Oct 03, 2025 / Uncategorized

Is It Better to Finance My Car Through a Credit Union or a Car Dealership?

When it comes to purchasing a vehicle with an auto loan, one of the biggest decisions you’ll make is where to get that financing. Both credit unions and dealerships can set you up with a loan, but not all financing is created equal. Not to spoil the ending for you, but credit unions save you money, keep things transparent, and give you way more control over your finances.

Let’s break down why credit unions (like Utah First) are the smarter choice — and what to look out for if you’re considering dealership financing.

Financing Through a Credit Union: Stability and Savings

If you like competitive rates, flexible terms, and people who know you by name and have your back, financing through a credit union just makes sense. Here’s why Utah First Credit Union could be your best bet:

Lower Interest Rates

Credit unions typically offer lower auto loan interest rates than dealerships or traditional banks, especially if your credit is in good shape. That means smaller monthly payments and big-picture savings over the life of your loan — plus more cash for road trips, gas station pit stops, and less going toward interest.

No Hidden Fees or Markups

Dealerships sometimes play middleman with third-party lenders — and tack on markups to boost their commission. In the end, you pay more than you should. Credit unions skip the smoke and mirrors. At Utah First, you get fair, transparent financing without sneaky fees or inflated rates. What can we say? We love our members.

Auto Loans for All Credit Types

Got excellent credit? Awesome! Still working on it? That’s okay, too. At Utah First, we provide auto loans for all credit types, which means we don’t write you off just because your credit score isn’t perfect. Everyone deserves a fair shot at financing and a reliable car, and we take the time to understand your situation to help you reach your goals!

More Flexible Loan Terms

Manufacturer promotions at dealerships can be rigid, but credit unions are built to flex. Whether you want to pay off your loan fast or stretch it out for lower monthly payments, we’ll work with you to find a loan term that fits your life. We’re flexible like that!

What You Need to Know About Dealership Financing

Dealership financing always seems convenient upfront. You pick the car, sign the papers, and drive off. Easy peasy. But dealership convenience usually comes with a cost. Here’s what to watch out for:

Higher Interest Rates and Markups: Dealers often pad your rate with a few extra percentage points. That markup doesn’t buy you anything extra — it just makes your loan more expensive.
Pressure to Buy Add-Ons: Extended warranties, service contracts, gap insurance — dealerships love to pile these onto your loan. Sometimes they’re useful, but they’re often overpriced compared to buying them separately.
Limited Loan Options: Dealerships typically prioritize the lenders that make them the most profit, not necessarily the ones that offer you the best deal.

What’s the Right Choice for You?

Choose a credit union for better auto financing!

If you’re weighing your options, credit unions are the clear winner. Lower rates, fewer fees, more flexibility, and service that feels personal — that’s the Utah First way.

Don’t let dealership markups eat away at your wallet. Get pre-approved with Utah First and confidently finance your next car with a post-purchase fist bump.

Ready to hit the road? Apply for pre-approval today, and let’s get you into your new ride with financing that fits your life.