A lot of us have a dream car, a car that we keep watching on the roads and wishing to be in its driver seat. But more often than not, it is always the budgetary constraints that keep it a ‘dream’ car. Not just a car, but even high-end sports bikes. We want to save enough to be able to afford it. Rarely do people buy such assets with full cash, they always go through a car loan system. But before you fall into the trap of loans and monthly installments, it is important to weigh all the pros and cons of car loans. In fact, it starts with choosing the right loan credit provider. If you want to getting a car loan in Amsterdam, NY, you can rely on Sidney Federal Credit Union. To make the decision easier, we have made a list of benefits and disadvantages when choosing a car loan.

Pros of Car Loan

Instant access to the vehicle

When you buy a car through a car loan, you get instant access to it. You don’t have to wait for years to save up, since you start repayment with easy installments. If you live in a faraway area and need to get a car for your daily commute, you can get your hands on it with a secured loan.

Builds your credit history

Repaying a loan on time helps to build and improve your credit history. A good credit history is important if you want to have bigger plans of investing in a home. It is easier to get a home loan with a good credit history.

Lower-interest loans

Secured car loans usually have lower interest rates. Although it depends on the car you are purchasing and the total loan amount. If you have a great credit score, you can get attractive offers and get a car without paying high-interest rates on your debt. If you opt for a car loan in Amsterdam, NY via SFCU, their car dealers will help you with low rates. For new cars, the rate of interest by SFCU is between 5 to 7%.

Flexible loan processing

With the growing trend of financing assets via loans, credit unions and banks have made the processing of loans much easier. Loans are sanctioned in less than a week’s time provided you have all the necessary documents. Some credit unions have completely digitized the entire process of application via their websites.

Cons of Car Loan


One of the biggest disadvantages of taking a car loan is the value of your car will depreciate over time. It also depends on which model you are buying, but if you are buying a used vehicle, then the amount you pay after a year is higher than the market value of the car. In case, you wish to upgrade to a newer car by selling it, you will have to again cover the costs between the finance company and the amount received from the sale.

Low EMI, High Interest

If you choose lower monthly installments then you will end up paying higher interest rates. A lot of loan offers are exciting with their low EMIs but it proves to be a disadvantage in the longer run. So, it is better to opt for a short-term loan if you can finance it well.

Ownership issues

If you get your car loan from a bank, you will not be the actual owner of your car until you repay the entire loan amount. If your car is collateral, you will always have the risk of it being taken away by the lender if you fail to timely repayments and default on your loan. And needless to say, it affects your credit score too. But taking a car loan from SFCU can be better as they offer vehicle owner flexibility. So you can secure your motorcycle loan in Oneonta, NY, or a car loan in Amsterdam, NY from SFCU.

Once you have decided to apply for an auto loan, choosing the right provider is also crucial. With SFCU, you will be in the driver’s seat with flexible terms and great rates that fit your budget. You can check the current rates for a motorcycle loan in Oneonta, NY, or a car loan in Amsterdam, NY on their website. The rates differ if you are buying a new vehicle or a used car. The best part is you also have the option to trade or refinance at any time during your loan term. The online application process is available on their website.