Whats's the difference?
VIP Auto Loans (financing through U1)
When you secure your auto loan directly with U1, we are handling your auto loan financing process from beginning to end.
You may choose to get pre-approved for a loan before visiting the dealership or gain approval after finding the vehicle of your dreams. The benefits of pre-approval for VIP Auto Loans include knowing your monthly payment and approved amount for when you start shopping, plus having more negotiation power at the dealership since your financing is already in place.
Dealer Financed Auto Loans (at dealership)
In this case, the dealership handles the loan process by working with banks, finance companies, or credit unions on your behalf. Once approved, the lender they partner with will manage your loan and collect your payments.
While dealer financing may be convenient because it allows you to purchase and finance your car in one place, there are a few things to keep in mind: You might not always get the lowest rate available and dealerships may include prepayment penalties and charge higher fees for add-ons like GAP insurance.
Key Differences Between U1 VIP & Dealer Financed Auto Loans
| Feature | U1 VIP Auto Loans | Dealer Financed Auto Loans |
|---|---|---|
| When you get the loan | Before or after you select the car from owner or dealership | After choosing the car at the dealership |
| Where the loan comes from | Directly from U1 | Arranged through auto dealership and may be a variety of lenders |
| Credit Inquiries | Only credit check from U1 | Multiple credit checks may appear on your report as it depends on dealership process |
| Time & effort required | No research required as you are using your financial partner U1 | Quick and convenient – dealership handles it |
| Level of control | You're in full control | You share control with the auto dealer |
DRIVE AWAY WITH A BETTER RATE!
APPLY NOW
To get started with your application, you can choose from any of the following options below. It’s your VIP experience; you decide what works best for you. Get in touch with us to begin your journey toward securing the best auto loan rates available!
- Email us: Lending@u1cu.org
- Give us a call: 800-762-9555 opt. 5
- Connect with us at one of our service center locations
- SCHEDULE AN APPOINTMENT