Buying a new car can be an exciting process -- but it’s also stressful. There are so many things to consider: from gas mileage to utility, new to pre-owned and of course…the cost. There’s no getting around the fact that a vehicle is a big financial commitment. Thankfully, your friends at HRCCU are here to make it a little easier.
When deciding on a new vehicle, you’ll have the option to either buy the car outright or to lease. Even if you choose to purchase the car, most people will take out a loan allowing them to spread out the total cost of the vehicle over a period of several years (most often three to five years). Leasing is similar to renting an apartment. Essentially, you make payments for the use of the car over a certain period of time and then return the car when your lease ends.
Ownership & Equity
While both have their perks, the bottom line is this- By purchasing the car (via a loan or without), once payments are up, you will have ownership and equity in the vehicle. With a lease, (similar to renting) you won’t own the vehicle at the end of your term. When the term is up, that couple hundred dollars you’ve been paying every month for the past three years is gone. If you bought the car, you’d be able to keep it, trade it in or sell it and use the profit to purchase another car down the line.
Lease-Like Benefits with None of the Fees
To better serve our members, HRCCU has crafted a loan that will offer you the same low payments of a lease with all the benefits of owning your vehicle. GreenLight Auto Loans provides members with a guaranteed future value of your car based on mileage and maintenance. You can enjoy payments up to 40% lower than conventional financing plans, and at the end of a GreenLight Auto Loan, you can choose to keep the vehicle, trade it in, or privately sell it. Most leases are generally fixed while most conventional loans have rates that can fluctuate based on the market. A GreenLight Auto Loan gives you the best of both worlds with a fixed rate and the benefits of ownership.
While leases typically cover 100% financing, the out of pocket fees can be overwhelming. With an HRCCU GreenLight Loan, we give you up to 95% financing, no application, scheduling or commitment fees, and you don’t have to worry about extra fees at the end of your loan.
With a lease, you’ll be charged for any scratches, coffee spills, or bumper dents that occurred while you were in your lease. On top of that, leases restrict how many miles you can put on the car, and will charge you for every mile over that limit you exceed (when you return the vehicle). Leased cars typically have a 12,000 mile per year budget, and you can be charged up to $0.25 per mile for excess mileage. So say you put an extra 1,000 miles on the vehicle every year of your three-year lease- that’s $750 you owe. Therefore, if you’re someone who just enjoys taking a cruise to listen to music or weekend getaways, a lease may come back to bite you.
What’s the Catch?
No catch- our GreenLight Auto Loans are available to all qualifying members looking to buy a new or pre-owned vehicle and who have a credit score of 600 or higher. If you’re interested in seeing how low your rate can go, or want to apply for a GreenLight Auto Loan, you can contact us online or head to your local branch to speak with an HRCCU team member to learn more.