Buying a new car can be an exciting process — but it’s also stressful.
There are so many things to consider. From gas mileage to utility, new vehicles or a used one, and of course … cost.
There’s no getting around the fact that a vehicle is a big financial commitment.
Thankfully, your friends at HRCCU are here to make it a little easier.
When deciding on a new vehicle, you’ll have the option to buy the car outright or to lease. Even if you choose to purchase the car, most people will take out a loan allowing them to spread out the total cost of the vehicle over a period of several years (typically three to five years).
Leasing is like renting an apartment. You make payments for the use of the car over a certain period of time, and then return the car when your lease ends.
Ownership & Equity of Automobiles
While both have their perks, the bottom line is this: By purchasing the car (via a loan or without), once payments are up, you will have ownership and equity in the vehicle.
With a lease, (like renting) you won’t own the vehicle at the end of your term.
When the term is up, that couple hundred dollars you’ve been paying every month for the past three years is gone.
If you bought the car, you’d be able to keep it, trade it in, or sell it, and use the profit to purchase another car down the line.
GREENLight Auto Loans: Lease-Like Benefits with None of the Fees
To better serve our members, HRCCU has crafted a loan that will offer you the same low payments of a lease with all the benefits of owning your vehicle.
GREENLight Auto Loans provide members with a guaranteed future value of your car based on mileage and maintenance.
You can pay up to 40% lower than conventional financing plans and at the end of a GREENLight Auto Loan, you can choose to keep the vehicle, trade it in, or privately sell it.
Traditional Vehicle Lease vs. GREENLight Auto Loan
Most leases are generally fixed in terms of interest rates, while most conventional loans have rates that can fluctuate based on the market.
A GREENLight Auto Loan gives you the best of both worlds with a fixed rate and the benefits of ownership.
While leases typically cover 100% financing, the out-of-pocket fees can be overwhelming.
With an HRCCU GREENLight Loan, members get up to 95% financing. There’s no application, scheduling, or commitment fees, and you don’t have to worry about extra fees at the end of your loan.
With a lease, you’ll be charged for any scratches, coffee spills, or bumper dents that occurred while you were in your lease. On top of that, leases restrict how many miles you can put on the car and will charge you for every mile over that limit you exceed (when you return the vehicle).
Leased cars typically have a 12,000-mile per year budget, and you can be charged up to $0.25 per mile for excess mileage. Say you put an extra 1,000 miles on the vehicle each year of your three-year lease — that’s $750 you owe.
If you’re someone who regularly takes road trips or has a long commute, a lease may involve extra fees and cost you more money than you thought it would.
How Do I Get One?
Our GREENLight Auto Loans are available to all qualifying members looking to buy a new or used vehicle and who have a credit score of 600 or higher.