What is the Mission Fed Rate Break Program?
When you’re cruising through the city or on a road trip with your family, the last thing you should be thinking about is your auto loan and the interest it’s building. Thankfully, Mission Federal Credit Union offers a new Rate Break Program that could help you lower your initial interest rate and take some pressure off your back and your wallet.
A look at car financing in America
If you’re worried about auto loans, you’re not alone. Experian Automotive, a company that provides automotive data, found that 87 percent of cars in 2015 were financed, up from 80 percent in 2010. Of those new financed vehicles, six-year loans were the most common length. However, about 25 percent of new car loans were estimated to take up to seven years to pay off.
Longer loan terms have become popular for keeping monthly payments down. The average monthly payment is about $482, which is pretty close to the $470 average it was a year ago. However, people are borrowing larger amounts. The average loan amount for a new car is about $29,000, which is 4.5 percent more than a year ago.
The Mission Fed Rate Break Program
Through our Rate Break Program, you could reduce your current interest rate, pay less on your Mission Fed Auto Loan each month and save money along the way. As long as you make on-time payments on your Auto Loan and have good standing in all of your Mission Fed loans and shares, we can reduce your original interest rate by up to 3 percent.
Just apply for a loan and we’ll let you know if you qualify for a rate break. If you do qualify, we’ll take a look at your loan and for every six consecutive monthly payments made on time, we’ll give you a 1 percent rate discount. Over the course of 18 payments, we can help reduce your rate by a maximum of 3 percent.
Applying for an Auto Loan
The process all starts when you apply for our auto loans in San Diego. We offer competitive rates and can guide you through the entire process of buying a new or pre-owned car or refinancing your current car loan with another lender. You can apply for flexible terms lasting 36 to 84 months for 100 percent financing with a variety of payment options, including automatic withdrawals, online and by phone.
We suggest applying for a loan before you visit your local dealership. This allows you to shop knowing your exact budget for smarter, more confident shopping. If you’re having trouble finding the right vehicle or don’t want to go through the hassles of car buying, Autoland can lend a hand. They’re a leading seller of new and used cars and a partner of Mission Federal Credit Union. Through their massive database, you can find the perfect car with the features and price you want. When you find that special car you want to call your own, Autoland can help you through the buying process and even deliver your car straight to your door.
You also get member pricing on numerous insurance products to give you extra protection and peace of mind. These products include:
- Auto Liability and Collision
- Credit Life and Disability
- Guaranteed Asset Protection Advantage
- Mechanical Breakdown Protection
The content provided in this blog consists of the opinions and ideas of the author alone and should be used for informational purposes only. Mission Federal Credit Union disclaims any liability for decisions you make based on the information provided. References to any specific commercial products, processes, or services, or the use of any trade, firm, or corporation name in this article by Mission Federal Credit Union is for the information and convenience of its readers and does not constitute endorsement, control or warranty by Mission Federal Credit Union.
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