How much can I borrow?
For new cars, we will loan up to 125% of the MSRP (Manufacturer Suggested Retail Price) plus refundable adds, (such as GAP Insurance and Mechanical Repair Coverage) for our most qualified borrowers. On used cars, we will loan up to 125% of the NADA (National Auto Dealers Association) retail value, plus refundable adds.
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What terms are available?
Terms vary. The most common new and used vehicle terms are three to five and a half years. New and used vehicles with values greater than $15,000 qualify for a six-year term.
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How do I know how much I should pay for the car?
Our loan representatives have the NADA Guide available to them, which can provide valuable information regarding MSRP and appraisals for new and used vehicles. UIECU can provide two computer print outs for you free of charge! Please call the credit union at 217-278-7700 for more information or to obtain your free printouts.
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What if I buy a car when the credit union lobby is closed?
Many area dealers in Champaign-Urbana and in the surrounding area can take your application and close your loan right in their dealership. There is no need to come to the credit union. For a comprehensive list of participating dealers, see Auto Dealerships.
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What do I need to provide before I can close my vehicle loan?
The credit union will need a copy of the buyer’s order, purchase agreement, or worksheet. This sheet provides all the information on the vehicle you are purchasing in addition to the purchase price, your trade (if applicable), plus tax, title, and license. You must also have full coverage insurance, with an effective date that matches your loan closing date, for the vehicle you are purchasing. There is a maximum deductible of $500 for both comprehensive and collision coverage and the credit union must be named as Lien holder on the policy. Your insurance agent will need to provide a copy of a Loss Payable Statement to our office within 30 days.
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Should I take the dealer rebate or teaser rate financing when purchasing a new vehicle?
Applying the dealer cash rebate to the purchase price can reduce your loan amount. But it isn’t always the best choice. Don't be at a disadvantage - call and ask us to run the numbers for you.
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How do I protect my investment in an automobile?
If you are borrowing more than the car's market value, you may want to consider Gap Protection. Loan Protection Calculator
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How do I know if I should consider an installment loan or a home equity to finance my vehicle?
Our team of lending professionals can help you make the right choice for your situation. Call or stop by the credit union to review your options.
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What is an Auto Tax Advantage Loan?
An Auto Tax Advantage Loan converts a regular vehicle loan to a loan with deductible interest payments, in most cases. (Usually, the interest is deductible on these types of loans, but you should always consult your tax advisor for advice.) UIECU will record a second mortgage, called a courtesy lien, on your home. Which qualifies the loan for potential tax deductible status by the IRS. There is a recording fee for the mortgage associated with this type of loan.
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- How do I know if I can deduct the interest?
- UIECU recommends that you seek the advice of a tax consultant. Another source of information is the IRS.
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What types of vehicle purchases/refinances are eligible for this program?
All automobiles, trucks, vans, motorcycles, motor homes, boats, recreational vehicles, and trailers that are new or used are eligible.
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How do I apply?
It's as easy as 1-2-3. Apply for your vehicle loan at UIECU and tell us to convert your loan to an Auto Tax Advantage. We will process your vehicle loan. Upon approval and when we receive the required documentation from you on the property, we will record the necessary documents.
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What do I need to provide to convert my loan?
We will need a legal description of your property (home) on which the lien will be placed and the Property Tax Identification Number for the property.
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