Rev up auto loan search at CU, WaPo’s Singletary advises
WASHINGTON (7/23/15)--Washington Post columnist Michelle Singletary this week offered some very direct financial advice young consumers seeking to buy their first car: join a credit union.
Singletary is a longtime credit union supporter and has spoken at several CUNA events, including its Governmental Affairs Conference.
In her July 21 column, Singletary offered advice to young people making their first car purchase, “something that comes up in almost every family,” she noted.
She outlined the story of a 23-year-old who has $3,000 saved and has chosen a used 2014 vehicle that costs $17,000. On his own, he qualifies for a $15,000 loan with a 9.9% annual percentage rate (APR). With a parent co-signing, he qualifies for $18,000 with a 2.8% APR. Both his mother and father are willing to co-sign.
“If he hasn’t already, check to see if he could qualify for a lower rate by getting financing through a credit union, which often offers lower rates than banks,” Singletary advised.
If the 23-year-old man wasn’t currently a member of a credit union, Singletary said he could find one to join at aSmarterChoice.org, a joint project of CUNA and the American Association of Credit Union Leagues. It is aimed at helping create consumer awareness of credit unions and building membership.