Vehicle Loans
No matter how you want to move — car, boat, motorcycle, tractor, or other means — Focus Federal Credit Union has everything you need to finance and buy your next vehicle. Our loans come with excellent rates and benefits, meeting our members’ needs.
We understand the buying process isn’t always simple or straightforward. That’s why TFFCU provides resources and guidance to help you make wise purchasing decisions. Plus, you can get pre-qualified for your next vehicle loan, avoiding spending unnecessary time and uncertainty at the dealership.
Qualifying for a Vehicle Loan
The paperwork required for a vehicle will depend on your situation and the type of vehicle you want to purchase. You can expect to provide complete documentation verifying your financial and employment status. Below are other documents you may need.
| Documents Needed for a Vehicle Loan | |
|---|---|
| Income Verification | W-2 Forms Pay Stubs Income Tax Returns Pension and/or Social Security Documents Alimony and/or Child Support Documents |
| Asset Verification | Bank Statements Retirement and Investment Account Balances |
| Debt Disclosures | Other Auto Loans Student Loans Credit Card Debt Existing Mortgage |
| Credit History | Permission to Check Credit Bankruptcy and Foreclosure Records |
| Employment Confirmation | Name and Contact Information of Employer |
| Vehicle Information | Make, Model, and Purchase Price |
Vehicle Loan Process
We understand that when shopping for a vehicle, you can’t always wait around for a decision. Having a solid game plan and keeping your numbers in mind makes shopping for your new vehicle easier and increases your negotiating power.
Numbers impacting your loan:
- Purchase Price. This is the amount the dealership or individual receives when your loan is funded. It includes the cost of the vehicle, add-ons, taxes, and fees. A lower purchase price will translate to a more affordable monthly payment.
- Down Payment. A down payment is the amount of money you put down on the vehicle at the time of purchase. A higher down payment can provide a lower interest rate and reduced monthly payment.
- Loan Terms. This is the time it takes to pay off your loan, usually in months. A longer loan term allows a smaller monthly payment, but it increases the total amount of interest you will pay over the term of the vehicle loan.
- Credit Score. Your credit score measures the financial risk you pose to the lender. A high credit score is a sign of responsible credit use and indicates a lower risk. Credit scores are grouped as Excellent (750 or higher), Good (700-749), Fair (650-699), or Poor (450-649). The interest rate available to you could vary depending on your credit score.
- Interest Rate. This is the rate of interest you pay as a percentage of your loan. Your interest rate will depend on your credit score, term length, and down payment. The lowest interest rates are available if you have a high credit score, a large down payment, or a shorter term length.
- Annual Percentage Rate (APR). This is the actual cost of your loan each year as a percentage of the loan. It includes the interest rate plus any loan fees. APR is slightly higher than your vehicle interest rate.
Getting pre-approved for your vehicle loan can give you an edge before shopping. It will give you a better idea of your monthly payment and how much you can afford.
Why Get a Vehicle Loan From Focus Federal Credit Union?
If you’re considering purchasing a new or used vehicle soon, comparing your options will help you find the best fit for your situation. When you choose a vehicle loan with Focus Federal Credit Union, you won’t just benefit from lower rates and personalized service; you’ll also gain access to valuable resources to enhance your financial well-being.
As an TFFCU member, you can take advantage of:
- Competitive Interest Rates and Loan Terms. TFFCU is committed to offering loan options to fit our members’ budgets and needs.
- Dedicated Customer Support. Our team addresses your concerns and provides support throughout your membership. They are your go-to when you have questions about your loan.
- Financial Education. Promoting financial education is core to FFCU’s mission to help members achieve financial well-being. We offered free financial wellness programs and financial counseling to members.
- Credit Building Benefits. Vehicle loans can enable you to improve or establish your credit.
Frequently Asked Questions
What do I need to know before applying for a vehicle loan?
Before you accept any form of financing, you always want to ensure you know exactly what you’re getting into. Interest rate, APR, taxes and fees, insurance, and ongoing maintenance impact your monthly and overall loan costs. Because these costs play a significant role in your loan terms and the overall cost of borrowing money, you will want a clear understanding of them.
Do I need to be a Focus Federal Credit Union member to apply for a vehicle loan?
If you’re not a member, you can apply for a vehicle loan, but you’ll need to become a member to complete your loan.
Can I get approved for a loan before I pick out my vehicle?
Yes. A preapproval lets you know exactly how much you’re preapproved for before you shop. Getting preapproved lets you know how much you can borrow and the interest rate.
What credit score do I need for a vehicle loan?
The credit score needed for the best loan depends on the lender. It’s possible to get approved with a lower score, but ideally, you will want to have a score of at least 675.
