Auto Loan Basics
How Does an Auto Loan Work?
An auto loan allows you to borrow money to purchase a vehicle and repay it over time through monthly payments. Your payment amount depends on several factors, including:
- Vehicle price
- Down payment
- Loan term
- Interest rate
- Credit profile
Most auto loans are secured loans, meaning the vehicle acts as collateral for the loan.
What’s the Difference Between New and Used Auto Loans?
New vehicle loans often come with lower interest rates, while used vehicle loans may offer lower purchase prices overall. AZCCU offers financing for both new and used vehicles with flexible terms available.
Should I Buy or Lease a Vehicle?
Leasing may offer lower monthly payments and the opportunity to drive a newer vehicle more often. Buying allows you to build ownership equity and avoid mileage restrictions.
The right option depends on your driving habits, long-term plans, and monthly budget.
Additional Auto Loan FAQs
Getting Preapproved for an Auto Loan
Getting preapproved before shopping can help you:
- Understand your price range
- Shop with confidence
- Strengthen your negotiating position at the dealership
- Streamline the buying process
To apply for preapproval, you’ll typically need:
- Proof of income
- Identification
- Employment information
- Social Security number
AZCCU loan approvals may remain valid for up to 30 days.
Understanding Auto Loan Rates
Your auto loan rate can be influenced by:
- Credit history
- Loan term
- Vehicle age
- Down payment amount
- Debt-to-income ratio
Arizona Central Credit Union offers competitive rates on both new and used vehicles, along with options like:
- Up to 84-month loan terms
- No application fees
- No early payoff penalties
- Rate discounts for qualifying automatic payments and protection products
Refinancing Your Auto Loan
Already financing through another lender? Refinancing your auto loan could help lower your interest rate or monthly payment.
Benefits of refinancing may include:
- Reduced monthly payments
- Lower interest costs
- Flexible repayment terms
- Consolidating to a more manageable budget
AZCCU also offers up to 90 days before your first payment on qualifying loans.
Need to Submit Proof of Insurance?
If you’ve already purchased insurance for your vehicle, you can quickly provide proof of coverage online. Our secure portal makes it easy to submit your insurance information, so your auto loan records stay current without the hassle of mailing documents or making a phone call.
Simply enter your Reference ID and PIN to access the protected submission portal and upload your proof of insurance in just a few minutes. It’s a fast, convenient way to keep everything up to date and ensure your loan information reflects your current coverage.
