Given the problems with our economy, it is generally more difficult to obtain car loans these days. However, many options still exist, and most people who want to finance a car are able to do so. Here are some reasons why you can finance that vehicle you desire.

Credit Unions have realized that it is important to provide the lowest interest rates possible to their members and the community. In addition, historically low interest rates from the government provides further incentive to make these loans available to consumers.

The terms and interest rate you can expect to pay has a lot to do with your qualifications. The amount of down payment on the vehicle, your credit score, and income will greatly impact your rate and available terms.

Generally, a new car will allow you to qualify for a loan with extended terms. This will lower your monthly payment but require you to pay more interest over the life of the loan. If you can afford it, consider the shortest possible term.

Interest rates can vary greatly. Unfortunately, someone with a poor credit history normally has to pay a much higher interest rate than someone with excellent credit history. This can significantly change the monthly payment.

If you want to keep your payment to a level you are comfortable with, you may need to either put more money down or look at a lower cost car. Do not get involved in a payment you honestly feel you can’t afford.

Many new cars have financing programs directly through the manufacturers and/or dealers. With car sales still at relatively sluggish levels, there are many attractive deals out there. You can find ultra low interest or no interest loans, cash back, or other incentives. Usually the most attractive features are difficult to qualify for through car dealers. You should consult your Credit Union first so they can find you the best interest rate and show you the different financing options that are available.

If you prefer not to lease or purchase a new car, then a used car may be the perfect option for you. Credit Unions specialize in used car loans, and just by giving them a call they can save you time and money by providing you with a pre-approved loan amount. This way you are able to shop for a car that you can afford.