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5 Financially Beneficial Perks That Come With an Auto Loan
Close your eyes and picture these two different scenarios. In the first scenario, you’re driving down the highway and you hear your car start to sputter. You know it’s time to make the move to a new car, but the financial stress is weighing on you. Now, in the second scenario, your car drives decently well and gets you from point A to point B; your family is expanding, and you’re looking for a vehicle option to suit your lifestyle change. While each of these stories are different, they are both in need of one thing: a reliable set of wheels. That’s the benefit of an auto loan. If you are questioning how an auto loan can be favorable for you, consider these two “W’s.”
Saving up for a new vehicle is great if you have the time; however, certain situations require a more time-sensitive reaction and you may not have everything you need. An auto loan is helpful in that you have the option to purchase a vehicle without having to pay for your new set of wheels up front. This can be lifesaving, as you are preventing yourself from driving your vehicle in an unsafe condition.
Another very important “W” to consider: no worrying. Financial stress can often be all-consuming but having the option to take out a loan can diminish that stress. An auto loan offers you the flexibility to make payments over time, allowing you to create a much more realistic payment goal for yourself. Additionally, an auto loan can help improve certain areas including budget, savings, and credit score.
Improve Your Budget
There are many benefits to an auto loan, but having control over your monthly payments is a huge plus. You can gauge the financial path that works best for you and implement those payments into your budget. This can diminish financial strain and allow you to choose the best vehicle without the stress of cost.
Improve Your Savings
This falls in tandem with improving your budget, as you can analyze how much you plan to spend monthly on your auto loan and use the remaining cash to put toward savings. Far too often we find ourselves using all of our savings to pay off a vehicle in full; but an auto loan allows you to keep your financial cushion while also being able to make that purchase.
Improve Your Credit
If you are working to build your credit score, taking out an auto loan is a great way to do this. Of course, you want to make sure that you are making your payments regularly and on time, but if you stay on top of said payments, you can gradually build your credit score.
For those looking to take out an auto loan, Orlando Credit Union is here to help. With competitive rates, loan terms up to 84 months, and the option to finance up to 125% of your vehicle’s value, making the switch to a new vehicle is now more feasible than ever. Plus, with our Wow! Rewards
points program, you can earn 1 point per $1,000 in average daily loan balances for qualifying loans each month. To find out more information or to apply today, head to the Vehicle Loans
tab on our website.