Limited-time 4.99% auto loan rate
When facing a high-interest auto loan, refinancing with UFCU can provide lower rates, reduced monthly payments and significant savings over the life of the loan. The average member saves $1,950 when refinancing, meaning they have more money in their pocket to invest in what matters most.
For a limited time, UFCU is offering a 4.99% interest rate on purchases or refinanced auto loans for qualified Members.
“This promotion offers members a way to get out of debt sooner [because of the shorter loan term or lowering their monthly payment,” Director of Consumer Lending John Castro said. “We work with people individually to try to figure out what they can afford and what works best for them to make sure they’re financially stable.”
UFCU also caps its highest interest rates at 17.90%, compared to the 22%-30% rates at many dealerships, ensuring members always receive fair financing.
GAP protects investments
If a car is totaled or stolen, standard insurance may not cover the full amount that is owed, leaving car owners responsible for the difference. That’s where Guaranteed Asset Protection (GAP) comes in.
UFCU’s GAP covers up to 135% of the loan balance and even provides a $2,500 credit toward a member’s next vehicle purchase if their car is deemed a total loss. Unlike dealerships, which charge $1,200-$1,400 for GAP coverage, UFCU offers this protection for only $649.
“When people don’t have coverage, they end up having to take a personal loan out. [If they] can't afford or don’t qualify to get another loan, many turn to payday lenders,” Castro said. “GAP coverage prevents them from going through all of that hassle, and the cost can be anywhere between $8 to $10 a month off what their monthly payment would be.”
One UFCU member was in an accident caused by an uninsured driver and was left $12,000 upside down on their loan. Because they had GAP coverage UFCU covered the full remaining balance, and they received an additional $2,500 toward their next car. You must still maintain full coverage insurance with your provider to be able to utilize the GAP coverage.
The DRIVE program: a personal car-buying assistant
- Choose the right vehicle
- Understand leasing vs. buying
- Secure the best financing options
- Navigate dealership negotiations with confidence
“Way too often, we see people who come to refinance with us who went to a dealer where they paid 50 to 60% above market value for their vehicle,” Castro said. “We want [our members] to be prepared. We want to make sure they’re paying the right amount for their vehicle.”
Building a better financial future
UFCU believes in financial success for all credit types, offering tools to help members improve their credit scores and secure better financing:
Credit Builder Loan: Helps low-credit members and members with no credit, boost their score by making small, manageable payments reported to credit bureaus. Many members have increased their scores from the 500s to the high 600s through this program.
Credit Mountain and Green Path Partnerships: Assist members in improving credit health and qualifying for better rates.
As a member-owned, not-for-profit financial cooperative, UFCU is built on trust, transparency and community support.
“UFCU is focused on serving our members,” Castro said. “We offer personalized service, and we have a commitment to their financial wellbeing. We meet people where they want to be met.”
Whether you’re refinancing, purchasing or improving your credit, UFCU is here to help you save more and drive with confidence.
If you need assistance in Spanish, their bilingual team is ready to help via phone at 512-498-CARS or in person at these branches.
Join UFCU today and take the wheel on your financial future. Visit UFCU.org to get started!
The above story was produced by Multi Platform Journalist Sydney Heller with Community Impact's Storytelling team with information solely provided by the local business as part of their "sponsored content" purchase through our advertising team.
