The Right Choice? Car Loan from Banks or Car Loan from Credit Unions

Unless you have some bundles of dollars in cash to buy a new car, you can drive down your choice of wheels through a car finance in Australia. Car loans in Australia are widely available through lending institutions like banks and credit unions, however, to select the one that benefits you most is a matter of weighing the options, your needs and advantages.

Let's see what are the benefits provided by these lending institutions to help you compare car loans in Australia –

Benefits of Banks in Australia

• Banks are more reliable & established - Bigger banks in Australia have been around for a while and are trusted for their reliability and stability. Even though large banks charge excessively, they won't easily fade away in times of crisis or downfall and that's the reason banks are more reliable and financially established than credit unions.

• Banks use more Advanced Technology - Larger banks have higher stacks of wealth, they adapt newer innovations in technology to provide better services to their customers through phone and online banking. Nowadays, banks do have their full-featured banking apps for smartphone users that let them do their banking on the go.

• Round-the-clock Availability - Undoubtedly, the major benefit provided by larger banks is the round-the-clock help desk for customers to contact bank officials even in the wee hours or later in the day or whenever a customer faces the problem. This is a big advantage for bank customers, especially when there is a need to speak with a bank representative.

• Any Place Banking at Branches, ATM Locations - Bigger banking corporations have more branches in multitude of locations in different cities and states in Australia. They also have widespread network of their ATM to bring more convenience to the customers.

Benefits of Credit Unions in Australia

• Low Rates, Low Charges - Credit unions in Australia are owned and run by its members. Since their services are not to make profit, the interest rates and fees offered by credit unions are quite lower than banks. Also, the credit union imposes no hidden costs, unlike banks who levies to increase their income and revenue. Thus, if you take a car loan through a credit union, you will not be spending more money as compared to the car loan from the bank.

• It's Easy to be a Member of Credit Union - Earlier, only an employee of a company or government office can become a member of credit union. These days, it is much easier. Just visit any credit union branch with your IDs and submit the joining form with a small deposit of $1 or $2.

• Dedicated and Personalised Service - Credit unions may not have a round the clock helpdesk or a hotline, however, they provide personalised services whenever there is a need. At credit union, you directly communicate with the loan officer instead of a customer service representative that are available in banks while applying for a loan.

• Concerned and Considerate - Since credit unions are not-for-profit organisations owned by its members, their core objective is to provide financial solutions to members. As a result, credit unions tend to be more concerned and considerate to members while they apply for loans.
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