How do auto loans work? Auto loans make it possible for consumers to purchase a new car without having all the cash on hand when buying. With an auto loan from your local credit union, you will receive the funds you need to purchase the vehicle in one lump sum, which you will pay a portion of back each month, with interest, over the term of the loan, which generally lasts 5-7 years.
How high will my monthly payment be? Your monthly payment amount will be determined by several key factors:
- The loan amount: The amount you borrow will be equal to the value of the car you are purchasing, or less. A great minimizer of the overall cost is making a sizable down payment and/or trading in your old vehicle when buying a new car.
- The annual percentage rate: Usually referred to as the APR, this is the effective interest rate you pay on your loan. Your interest rate is determined by your credit score and other general creditworthiness or financial wellness factors.
- The loan term:The default length of most auto loans is five years, but some lenders offer to stretch the term to six years or longer. A longer-term loan means paying less each month, but it also means paying more in overall interest throughout the life of the loan. A shorter-term loan also means you will own the vehicle outright sooner.
Where do I apply for an auto loan? The process of applying for a Seacomm Auto Loan is simple, quick, and easy. You can even apply for a loan online or over the phone! As a member of Seacomm, you may already have a head start through our loan pre-approval program, LoanEngine™. This program allows you to view and accept loan offers without having to come into a branch or fill out an application. If you qualify for a pre-approved offer, you will be presented with it through our SeaComm Mobile app or NetTeller™ in the “My Offers” tab, via email, and/or a letter through the mail.
You may accept offers immediately by following the prompts, or by contacting our call center at (800) 764-0566. Click here to login to your NetTeller™ to view your current offers! If you do not have any offers at this time, make sure to check back every 60 days.
TIP: SeaComm’s online auto buying center, Garage Gizmo, will give you a full view at the interior and exterior of all types of vehicles located at local dealerships. You will also receive a complete car description, which details the equipment, specifications, safety features, crash test ratings, warranties, recalls, and more. Click here to get started!