So after a long search, I finally bought a car on 4th of October and took a loan through the car dealer firmly believing that he will get me the best deal. I was approved for a $11,000 Loan for 5.99% APR for 60 months which is pretty attractive for most people (I fortunately have an excellent Credit Rating). In just a week's time, I got a letter from Suntrust who had bought my loan stating that they had reviewed my application closely and based on my excellent credit standing, my APR has been revised to 5.64%. The deal could not have been better.
Hence, in a nutshell I would be paying 211.29 * 60 = 12677.40 (An extra $1,677.40 over a course of 60 months). I promptly pay my first premium before the due date.
Life was going normal when during a casual conversation, my coworker mentioned that his friend got approved for 1.99% APR for used car from Point Breeze Credit Union. This credit union is based in Hunt Valley Area of Maryland and serves customers who live, worship or volunteer in 20 miles radius and charges no Loan Application Fee. I make an impromptu visit to the Bank not very far from my office on a slow day and get quickly attended by one of their Auto Loan expert. She checks my Car Title, License and gets basic information to run some numbers and BAGA-BING-BAGA-BOO, she tells me that I qualify for their 1.99% APR offer. The only caveat is that I have to open a savings account with them which requires to maintain a minimum balance of $10. I promise to visit the next day since I wanted to run some numbers personally and wanted to also check if Suntrust can match that offer.
I call Suntrust and find that since my loan was financed for less than a year, they cannot change the APR. They told me that my Pay Up Amount would be $ 10879.93 (Taking into account the 10-day Pay Up Period). My Amount was accruing at $1.67/day in the loan. This was enough information for me to convince that I need to refinance my loan. Next day, I visit the Credit union office again with my recent pay stub, Proof of Insurance, Car Title & Sun Trust Loan information. A different person attends me this time and after running the numbers again, she informs me that my monthly premium would be $190.65. I sign some papers, pay her $10 to open savings account and leave in few minutes.
To summarize, I would be paying $190.65 * 60 = 11439 + 211.29 (Premium Paid for 1st period to Suntrust) = 11650.29 over the course of the Loan Period. This is an exact saving of 1027.11 for less than a couple of Hour's work. The savings would be have been bigger if I had taken loan from them at the first place.
Though the saving is just about $200 a year, I still cannot ignore the fact that how most people (including me) so easily overlook the excellent service provided by their neighbourhood credit union. I would recommend people to check with their Local Credit Union whenever they are in the market looking for a loan (regardless of their Credit Score). Hope this helps you to expand your loan options and snatch a good deal.
Hence, in a nutshell I would be paying 211.29 * 60 = 12677.40 (An extra $1,677.40 over a course of 60 months). I promptly pay my first premium before the due date.
Life was going normal when during a casual conversation, my coworker mentioned that his friend got approved for 1.99% APR for used car from Point Breeze Credit Union. This credit union is based in Hunt Valley Area of Maryland and serves customers who live, worship or volunteer in 20 miles radius and charges no Loan Application Fee. I make an impromptu visit to the Bank not very far from my office on a slow day and get quickly attended by one of their Auto Loan expert. She checks my Car Title, License and gets basic information to run some numbers and BAGA-BING-BAGA-BOO, she tells me that I qualify for their 1.99% APR offer. The only caveat is that I have to open a savings account with them which requires to maintain a minimum balance of $10. I promise to visit the next day since I wanted to run some numbers personally and wanted to also check if Suntrust can match that offer.
I call Suntrust and find that since my loan was financed for less than a year, they cannot change the APR. They told me that my Pay Up Amount would be $ 10879.93 (Taking into account the 10-day Pay Up Period). My Amount was accruing at $1.67/day in the loan. This was enough information for me to convince that I need to refinance my loan. Next day, I visit the Credit union office again with my recent pay stub, Proof of Insurance, Car Title & Sun Trust Loan information. A different person attends me this time and after running the numbers again, she informs me that my monthly premium would be $190.65. I sign some papers, pay her $10 to open savings account and leave in few minutes.
To summarize, I would be paying $190.65 * 60 = 11439 + 211.29 (Premium Paid for 1st period to Suntrust) = 11650.29 over the course of the Loan Period. This is an exact saving of 1027.11 for less than a couple of Hour's work. The savings would be have been bigger if I had taken loan from them at the first place.
Though the saving is just about $200 a year, I still cannot ignore the fact that how most people (including me) so easily overlook the excellent service provided by their neighbourhood credit union. I would recommend people to check with their Local Credit Union whenever they are in the market looking for a loan (regardless of their Credit Score). Hope this helps you to expand your loan options and snatch a good deal.
