Greater Central Texas Federal Credit Union,
3305 E Elms Road
Killeen, TX 76542
Telephone: 254-690-2274
www.gctfcu.net

New V/s Used Auto Loans

29. March 2018 Administrator Auto Loans (0)
If you considering owning a car but can’t decide on whether to opt for a new car or a used one, it might be helpful to consider the financing options for both of them. Pre-owned cars cost less as compared to new ones. However, both involve a considerable amount of money. Here are some points of comparison between financing options of used and new cars.

  • The Down-Payment
The down-payment for both types of cars differs greatly. Lenders demand a higher down payment for used cars as compared to new cars. So if you are considering a used car, be ready to shell out a higher down-payment.

  • Duration Of The Loan
The tenure for repaying the loan for a new car is usually longer. However, when it comes to used cars, the loan repayment tenure is shorter. The decisive factor when it comes to the tenure of loans for used cars are the amount of loan and age of car.

  • Monthly Instalments
The monthly instalments for new cars are lower in value as compared to those of used cars. This is because the tenure to repay the loan of new cars is longer than that of used cars.

  • The Amount Of Loan
Loans for new cars are usually granted for either the complete value of the car or significant percentage of the total cost. This is because a new car’s value is higher. For used cars, lenders are willing to offer loans at a considerably lower percentage of their value as these cars are priced at a lower value. Many buyers consider credit unions as they offer greater flexibility as per the amount and duration of the auto loans.

  • Interest Rates
The interest rate on loan for a used car is higher as compared to that of new cars. This is because the loan amount of a used car is lower than that of a new car. New cars have a better resale price and are in more demand. This makes them a safe option for lenders and that’s the reason why interest rates are lower. Credit unions are a boon for car buyers as they offer loans on new and old cars at very reasonable interest rates.

  • Depreciation
If you are considering the value of depreciation that you will incur on purchasing a car, then a used car is your best bet. The value of depreciation on a used car is negligible as compared to that of a new car whose depreciation rate is quite high.

Greater Central Texas Federal Credit Union offers loans for both used as well as new cars. For more information about our services, visit 3305 E. Elms Rd., Killeen, TX 76542 or call at (254) 690-2274.

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GCTFCU Blog | Credit Union: An Affordable Financial Institution
Greater Central Texas Federal Credit Union,
3305 E Elms Road
Killeen, TX 76542
Telephone: 254-690-2274
www.gctfcu.net

Credit Union: An Affordable Financial Institution

26. November 2020 Administrator Blog (0)
Credit unions are cooperative financial institutions that are owned and managed by their members.  They are preferred by many due to their affordable financial services and products. They offer a variety of convenient personal services, attractive rates and fees, shared branching and flexible terms & conditions.

Let us delve deeper into understanding the working of credit unions and what they have to offer:

  • They are Non-Profit Organizations: Credit unions accept deposits from members and offer loans without any intention of making profits. Due to the fact that they are non-profit organizations, they offer loans at low interest rates and higher rates for deposits.
  • Operating Principles: Credit unions operate with the intention of pooling financial resources for the benefit of members. Their operating principles revolve around voluntary membership, non-discrimination, serving members, building financial stability, social responsibility and democratic control.
  • Services Provided: Some of the services offered by most credit unions include but are not limited to payroll deduction, online access, MasterCard Gift Cards, ACH origination, ATM, Bill Pay, Wire Transfer, Direct Deposit, Notary Service, savings and investments, lending services (secured and unsecured loans), Traditional and Roth IRAs, Club accounts (Christmas and Vacation), Overdraft protection and more.
  • Reasons For Joining A Credit Union: Credit union members enjoy benefits such as low fees, higher interest rates, excellent customer service, member-centric services, community support, security of deposits (regulation by the National Credit Union Administration; every account is insured up to $250,000), financial literacy and independence, easy qualification, easily approachable in spite of a low credit score etc.
In conclusion, the fact that credit unions are member-owned non-profits plays a prime role in making them affordable financial institutions. Their member-centric approach as opposed to a profit-centric one makes it possible to offer loan products at lower rates, higher rates of interest on savings, access to low-fee checking accounts and more. They are the best option for millennials who are just starting to make financial decisions and require guidance to manage and control their funds without spending much on fees and interest.

Greater Central Texas Federal Credit Union offers a variety of financial services including savings accounts, secured/unsecured auto loans, etc. to its members. For more details on credit union, visit 3305 E. Elms Rd., Killeen, TX - 76542. You can also call at (254) 690 – 2274.

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