A CREDIT UNION CAR LOAN + GAP INSURANCE CAN TURN THINGS AROUND
We live in a metro area that’s reliant on personal vehicles. It’s challenging to get to work, school, grocery stores, and restaurants without a car or truck to drive. Yet, a vehicle is a major purchase that can add thousands to a family’s yearly budget. As a CPS IBEW Federal Credit Union member, you can bridge that divide with a great deal on a car loan and protect that investment even more with what’s called Guaranteed Asset Protection (GAP) insurance.
Take Advantage of a Credit Union Car Loan
As a CPS IBEW Credit Union member, you have a secret weapon when it comes to negotiating the cost of a new car: a pre-approval for an auto loan. Simply apply online, receive a response the next business day, and walk onto the car lot knowing how much you can spend, which can increase your negotiating power. You’ll likely be offered a “zero percent financing” option available through the car dealership, but don’t be fooled. Over the life of the loan, a low-interest auto loan through CPS IBEW Credit Union can likely save you more money because the loan can be customized to your needs, even if you have a low credit score.
Consider GAP Insurance
On average, a new car can lose more than 10% of its value in the first month after you drive it off the lot and 20% by the end of year one. That means if something happens to the vehicle early on—it’s totaled or stolen, for instance—you may discover you owe more than the car is worth. GAP insurance can help protect against that happening by covering the difference between the market value of your vehicle and the balance left on the underlying loan.
GAP insurance can make sense when you’re able to secure a loan with a small or no down payment. It can also be helpful if you fear a loan will “go upside down” (you owe more than it’s worth) after a trade-in, when the loan term is longer than 48 months, or it’s a high-usage vehicle that might depreciate faster than usual.
One of the best features of GAP insurance is that you don’t need to purchase it when a loan originates. In fact, there’s no reason to wait until you buy a new car to explore either of these options. A current vehicle can be refinanced through the Credit Union and GAP insurance added at any time. Simply visit or call your favorite CPS IBEW FCU location to get started.
Plus, for a limited time (through March 20, 2020), you can fill up your tank on us! Receive a free $100 gas card when you finance a new or used vehicle through CPS IBEW FCU or when you bring your existing vehicle loan over to us. Learn more here >
