7 Frequently Asked Auto Loan Questions
Purchasing a vehicle comes with many emotions. One minute you’ll be excited about a brand new vehicle, the next, you’ll have a headache about all of the details involved with figuring out finances. But purchasing a vehicle doesn’t have to be filled with as much stress and anxiety as you think.
When you’re deciding how to pay for your vehicle, you’ll want to work with a lender who helps you understand your options. At Lanco Federal Credit Union, we’re experts in the auto loan process, and we’re ready to assist in whatever way we can. That’s why we’re taking some of the most common auto loan questions that we hear and answering them right here in this post!
Q: How much can I borrow?
A: We get this auto loan question a lot, but the answer is not always that simple and tends to depend on many different factors. For instance, the vehicle’s model year and value play a large part in how much you can borrow. Borrower qualifications are also considered, including your debt to income ratio, which is something we can help you determine.
Q: Can I get a loan for used vehicles?
A: Yes! Lanco FCU offers auto loans on used vehicles with model years up to 24 years old. (For financing of vehicles 25 years old or more, a personal loan may be a financing option to consider.) Depending on the age of the vehicle, the maximum loan amount and terms available may be more restricted, but Lanco FCU’s rates for used auto loans are among the best in Lancaster County and beyond.
Q: What if I have limited or no credit history?
A: When you have limited or zero credit history, there are two options you’ll want to weigh—applying with a qualified co-signer or seeking a first-time buyer loan. Applying with a co-signer will likely get you a better rate, but it may be challenging to find someone willing to be responsible for your loan if you stop paying. If you can’t find a co-signer, or if you’re determined to be financially independent, you may be able to get approved on your own through Lanco FCU’s First-Time Auto Buyer loan. This car loan option is a great way to start establishing a credit history, plus it offers fair rates and terms to get you started on a healthy financial journey.
Q: Can I take a loan out for recreational vehicles?
A: Lanco FCU does offer RV loans but determining how much you can borrow is a more involved process since every RV can have a wide range of features. Depending on your financial goals and available assets, it might make sense to instead use a home equity loan to finance the purchase of a recreational vehicle. Because of these considerations, we recommend speaking with a lender before you apply for RV financing.
Q: What happens if my car is totaled or stolen?
A: Having your car totaled or stolen is scary and inconvenient enough—and it only gets worse when you factor in that you’ll still owe loan payments on a vehicle you can no longer drive, plus the payments on your replacement vehicle. Adding Guaranteed Asset Protection (GAP) to your loan is a great way to protect your finances from that frustrating situation. Lanco FCU’s GAP Plus program may reduce or eliminate the gap between what your vehicle insurance will pay and what you owe on your loan if your vehicle is deemed a total loss due to an accident or theft. Plus, it can help you get into your next vehicle by reducing your loan at the credit union by $1,000.
Q: Is there any relief available if I can’t make a loan payment?
A: We get it—sometimes life happens, and paying your auto loan may become difficult. Planning for the unexpected by adding Lanco FCU’s Debt Protection with Life Plus to your loan could help protect your finances against death, disability, or involuntary unemployment. If your loan is not covered by Debt Protection, or if there’s a different reason why you’re in a tight financial spot, contact us to discuss your options. You could be eligible to modify or defer payments, which can help you stay in good standing with the credit union, avoid late fees, and protect your credit reputation.
Q: How long do I have to wait for loan approval?
A: Most of the time, auto loans through Lanco FCU will be approved within two business days, and rates are valid for up to 60 days. You can easily apply for your car loan online or in person at one of our Lanco FCU branches. Just give us a call at (717) 569-7180 to schedule an appointment.
Looking for an Auto Loan That Suits You?
Do you still have auto loan questions? That’s okay! Our team at Lanco FCU is here and ready to help! We can answer all of your questions and find an auto loan that works for you.
Apply online today or give us a call to get the process started!