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Back to Car Financing

Types of Financing

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There are various financing options available to you when you purchase a vehicle. Be sure to look at all of them and choose the one that best fits your needs.

Virginia Credit Union

Check your credit union's financing options first. We offer a range of car loans with low rates, terms to fit your needs, and affordable monthly payments.

  • Car Loan: With a Virginia Credit Union car loan, there is no penalty for paying off your loan early. Our car loans are calculated using the "simple interest" method. This means the finance charge is assessed on the outstanding loan balance.

Dealer financing

Dealers sometimes offer teaser rates that sound good, but do your homework carefully. The special rate may be tied to selected models and short loan terms. Your monthly payment may be higher, the car you want may not be available at the advertised rate, or the dealer may make up the difference with hidden charges.

Often, by taking the special financing rate you don’t get a cash rebate. Sometimes it may be better to pass on the dealer financing, take the rebate and finance the car with your credit union. For details, see Special Rate or Dealer Rebate.

Some dealers offer low-rate financing that is also an "add-on" rate. This means that interest is pre-computed, and if you pay your loan off early, you are entitled to only a portion of the interest back.

Other financing sources

You can also finance your loan through a bank or a finance company. However, obtaining your loan from these sources could cost you more, so compare your options.

If you have any questions or if we can help you in any way, please contact Member Services at 804-323-6800 or 800-285-6609.