|Who They Loan To - Credit Criteria|
|Their Preferred Loan Structures|
|General Guidelines and Restrictions|
|General Contact and Payoffs|
|Summary of Hughes Auto Loans|
The following sections are based on my dealership experience with Hughes and may not accurately reflect what you as a direct consumer may experience.
To compare auto lenders rates visit: Current Auto Loan Rates
Please read my [ disclaimer ]
As mentioned above, Hughes Credit Union loans to upper level credit customers and score is not much of a factor in their loan decision process.
In order to qualify for their program, customers need a satisfactory credit history that shows a prior timely payment history and the ability to pay on the new vehicle.
They have an across the board tier structure, which is beneficial for customers that would have a high credit score, but some smaller factor has driven their credit score down.
This means that a 580 credit score customer, that's approved, will receive the same rate as a 760 credit score customer that's approved. This is assuming an identical loan.
I remember one customer with a 589 credit score that Hughes once approved for a third auto loan. That's very rare for a lender to approve a loan like that.
Of course, this particular customer had a strong credit history and the ability to repay the new loan. His score had been driven down by multiple medical collection accounts.
Medical collections are something they are willing to over look if your credit history has proven, through one or more well paid...
Hughes Credit Union takes into consideration a number of factors when deciding on an approval and unfortunately, it would be impossible for me to tell you precisely what they are looking for.
Just know that the longer your credit history and the overall better paying it has been, the better your chances are for an approval.
Loan Structures For
Hughes Credit Union Auto Loans
They are looking for the loan to value to be a max of 100% of retail plus approved back end products:
The 100% is the loan to value based on a new cars MSRP, Kelley blue book retail or NADA retail, if used.
This level of advance is available even for their 84 financing option.
An example, if a vehicle had a $30,000 retail blue book value, then Hughes Credit Union would be willing to loan $30,000 (100%) plus TT&L and the extra back end products from above.
The 100% may not seem like a lot, but keep in mind this is the retail value they are lending off of and not the wholesale value like the majority of lenders.
This is a great benefit to customers looking for no money down auto loans and/or are having to roll over negative equity from a trade in vehicles loan.
Another great benefit of their program is that they are not limiting advances on trucks and SUV's as many auto lenders have begun to do these days...
They seem to offer the same rates and terms to customers whether lending direct (from them direct to you) or indirect (through the dealer to you).
Hughes Credit Union does not seem to offer any additional discounts that other lenders may offer like:
That may sound disappointing, but in reality their rates are priced as low as they can be up front and it may only affect certain customers for certain loans.
General Guidelines For
Hughes Credit Union Auto Loans
Vehicles That Do Not Qualify
I've never run into any age or mileage restrictions, which is a huge benefit.
They also loan on:
In addition, they offer very competitive GAP insurance rates.
Here is some quick contact information:
All in all, they offer some excellent rates and terms for new and used vehicles. You can feel confident in knowing that you are getting a very competitive rate if approved through Hughes.
They are also one of the few auto lenders that still have longer 84 month terms available for auto loans.
You can access the Hughes Credit Union website here. Don't forget to bookmark this site so that after you get your approval you can learn some very valuable time and money saving car buying tips.
Their rates are good for new vehicles, but with excellent credit and the right loan structure you could probably do better.
The majority of the deals I send their way, are for used car loans for people with great credit, but a lower than "prime" credit score.
Many credit unions are hopping on the "green" car bandwagon and are offering additional discounts for buying hybrid cars. I have not seen anything yet from Hughes Federal Credit Union, but it's something you'll want to ask about.
To learn more about hybrids - technology and tax credits, then take a look at new hybrid automobiles.
As for Hughes Credit Union auto loans for private party and lease buyouts, I'm not too sure what they offer, if they offer anything at all. Their website does not reflect anything regarding these two items and I do not offer either service at the dealership I work for.
Return from Hughes Credit Union to Auto Loans
Return to Insider Car Buying Tips home