Shopping for a new or used car can be a stressful experience – but it does not have to be.
In order to make an educated and simplified decision it is best to walk into the dealership with low interest financing already preapproved. Knowing that you already have financing taken care of, negotiate the price of your car and then show the dealership your financing offer.
Chances are the dealership will try to beat your financing by offering you 0% financing through the manufacturer – which could save you thousands of dollars in interest over the life of the loan. If you are offered 0% financing, take it and feel good about your savings. If not, you already shopped around for the lowest rate and you can continue on with your vehicle purchase.
NEFCU finances auto loans up to $100,000 with no origination fee and rates ranging from 3.09% to 14.70%. You can choose terms of 12 to 96 months, but NEFCU does not offer online preapproval.
Because NEFCU is a credit union, you must be a member in order to apply for an auto loan. You are eligible for NEFCU if you:
- Live in Nassau and/or Suffolk Counties
- Work in Nassau and/or Suffolk Counties
- Worship in Nassau and/or Suffolk Counties
- Attend school in Nassau and/or Suffolk Counties
- Regularly conduct business in Nassau and/or Suffolk Counties
- Family Sponsorship – An existing NEFCU member can sponsor in an immediate family member (mother/father, brother/sister, child, grandparent or grandchild) or any household member
- Membership is not open to individuals who live, work, worship, attend school and do business exclusively in East Hampton, Southampton and Shelter Island.
- You can contact NEFCU at: 516.561.0030 or at 800.99.NEFCU outside LI/NYC or send an email to [email protected]
How To Apply
Applying for a NEFCU auto loan online requires the same information that an auto loan application at a physical bank would require, you will just be providing the information online. In order to apply, you should have the following information ready:
- Contact Information: Your address, phone number, Social Security number, email address
- Personal References: Required in some cases. NEFCU will request them if necessary.
- Financial/Employment Information: Your employer, gross income and expenses, and monthly debt payments.
- Vehicle Information: Make, model, year, mileage and VIN of the auto you plan to purchase.
NEFCU allows you to apply for an auto loan online, at a NEFCU branch or by calling their call center. It does not provide online preapproval, but you can obtain preapproval at a branch before shopping.
NEFCU offers a $300 coupon valid at select dealers on your new or used auto. You can apply online, at a branch or by telephone by calling 1-800-99-NEFCU. Your rate will be determined by creditworthiness, loan amount, year of the vehicle, and loan term, as per the rate chart.
Everything Automotive Service
NEFCU’s Everything Automotive service allows you to shop for new and used autos, compare different makes and models, take a virtual test drive and schedule in person test drive with different dealerships. Everything Automotive also offers discounted GAP insurance, auto insurance, and extended auto warranties.
This service is accessible only to NEFCU members who apply for auto financing.
The Fine Print
Interest rates on new and used auto loans through NEFCU are based upon vehicle year and loan term, as seen on the rate chart here. The rates shown on the chart are subject to credit approval, and those who do not qualify may be offered a higher interest rate. You will not know your rate until you apply.
Not all borrowers will qualify for an 8-year loan term, and you are required to have and maintain a credit score of 670 or higher in order to qualify for the rates shown in the rate chart.
Used auto loans through NEFCU must not be older than 9 years, but there are no mileage restrictions. There are no restrictions on vehicle make or model, but NEFCU will not finance a purchase of a used auto from a private party seller.
The minimum loan amount for a 6-year term is $15,000, for a 7-year term is $25,000, and $30,000 for an 8-year term. Only new vehicles are eligible for an 8-year loan term, and are eligible for a 100% loan to value ratio.
- Rates starting at 3.09%, based on creditworthiness
- Loans up to $100,000
- Can apply online, at a branch, or by phone
- $300 off of your auto purchase at select dealers
- No prepayment penalties
- Discounted auto insurance, GAP insurance, and extended warranties through NEFCU
- No make or mileage restrictions for used auto loans
- Rates as high as 14.70%, based on creditworthiness
- No online preapproval
- Do not know your rate until you apply
- Must be a NEFCU member to apply
- Rate chart can be complicated
- Minimum $30,000 new auto loan to qualify for 8-year loan term
- Required to have an maintain a 670 credit score for 8-year loan term
- Used autos must be 9 years old or newer
How It Stacks Up
Looking for a lower APR? Capital One’s APRs start at 3.99%, and it will finance up to $40,000. Even though its maximum loan amount is lower than NEFCU’s, it offers online preapproval, loan terms of 36 to 72 months, and no origination fee. With rates topping out at 11.25% for new car loans, NEFCU’s interest rates can be fairly steep, but Capital One is a good alternative.
If you’re looking for the personalized experience of a credit union, but are not eligible to join NEFCU, then consider PenFed Credit Union. Anyone can join PenFed Credit Union with a contribution to one of two designated charitable organizations. Its rates range from 2.49% to 3.49% and it will finance loans up to $100,000. PenFed does not allow you to obtain online preapproval, but it charges no origination fee and offers terms of 36 to 60 months.
Check a Variety of Lenders for Your Auto Loan
Credit Unions are now financing more auto loans than traditional banks because of their more personalized customer experience, more competitive rates, and focus on the customer. When shopping for your auto loan, consider shopping credit unions such as NEFCU for a more flexible, lower interest auto loan.