At times throughout the time you own a vehicle, the amount that you owe to a financial institution, like E&G EFCU, is more than the actual NADA value of the vehicle. Your insurance company will normally pay you the value of your vehicle at the time of the loss, not what you owe. This can leave a gap of thousands of dollars you are responsible for.
Gap insurance is affordable coverage to insure the gap between what is owed on your vehicle and its actual value. So, if your vehicle is involved in a total loss (i.e. accident or theft) your insurance company covering liability and collision will pay up to the value of the car and Gap insurance will cover the rest.
As long as there is a book value for the vehicle you are purchasing, you may borrow money to purchase the vehicle up to the current NADA value.
Value of the vehicle is the main consideration.
Applying for a loan at E&G EFCU is fast and easy. Just CLICK HERE to apply now.
What I will need when applying:
- Completed and signed application
- Employment verification form
- A current pay stub
- A valid photo ID (not expired)
The amount you can borrow for a new or used vehicle is based on the vehicle’s value or MSRP (for new autos), with a maximum of $50,000.
If purchasing a new vehicle, the maximum you can borrow up to 120% of the vehicle’s MSRP value (So tags, taxes and warranty may be included). This can vary depending on a member’s credit history and loan underwriting considerations. Member’s borrowing 80% of the vehicles NADA value or will receive a preferential rate that is 1% less than if they are borrowing more than 80% of the vehicles value.
If purchasing a used vehicle, the maximum you can borrow up to 100% of the vehicle’s NADA value. This can vary depending on a member’s credit history and loan underwriting considerations. Member’s borrowing 80% of the vehicles NADA value or will receive a preferential rate that is 1% less than if they are borrowing more than 80% of the vehicles value.
The maximum term for a loan for a “NEW AUTO” with E&G EFCU is 84 months. If the loan is for a “USED AUTO” the maximum term is 72 months.
Any automobile with a model year which is the same as the current year and one-year prior is considered “New”. (i.e. In 2018 any vehicle with a 2018 or 2017 model is considered new, even if previously titled)
Any vehicle with a model year, 3 or more years prior to the current year is considered “Used” (i.e. In2018 any vehicle with a 2016 model year or older is considered used)
In either case a loan officer will discuss what your desired monthly payment would be and tailor a term to best accommodate your desired payment, as long as it is equal or less than the maximum allowed term for the loan type.