Cozy Up To A Great Auto Loan Rate
Holiday Auto Loan Promotion
Campaign Target
Focus on both current and prospective credit union members.
Persuade members to apply for an auto loan with us by offering"
- First payment (ONLY the month of November) if the member purchases a vehicle from Enterprise Car Sales
- No payments for 60 days (November 1 - December 31) on any vehicle loan
Campaign Timeframe
November 1 - December 31, 2024
Assets
- Statement Insert & Teller Card
- Flyer
Information to help you understand What’s In It For Them
- Helps members purchase a vehicle from a partner
- We offer low rates
- Discount of ½% APR with eAccounts
- Fast & easy online loan processing
- Pre-approvals available
What's the Skinny On Auto Buying?
- Auto loan debt is the second-largest category behind mortgages.
- Average auto loan prices — $40,366 for new vehicles and $26,685 for used vehicles.
- Average auto loan terms — 67.9 months for new cars and 67.4 months for used cars.
- Average Monthly Payments — $738 for new cars and $532 months for used cars.
What about BHPH (buy-here, pay-here) businesses, also known as “corner lot” dealerships?
While there are exceptions, these dealerships are often known for predatory lending practices.
- The sticker price is often higher than traditional dealerships.
- Interest rates can look more like credit card rates than typical auto loan rates.
- Extra fees usually apply.
- There may be an unusual payment schedule requiring members to pay more often than the typical payment schedule.
- Some BHPH places require a tracking device to be installed on the car, allowing for easier repossession in case of payment default.
- 10-20% of BHPH sales end in repossession.
In short, these should be among the last options you’d consider, but sadly they capture up to 15.5% of the used car financing market!
Buyers with lower credit scores are attracted to these types of dealerships because they feel they will qualify for a loan. Many of our members do not realize that we can and do finance even those with D and E credit scores at much lower rates. In fact, in 2023, the BHPH interest rates were between 24-30%. Our D and E rates range from 12.75% to 17.99%!
|
$15,000 Vehicle, 48-month Term |
|||
|
BHPH |
Beach |
Savings |
|
|
APR |
24% |
14.24% |
9.76% |
|
Monthly Payment |
$489 |
$411 |
$78 |
|
Total Interest |
$8,489 |
$4,769 |
$3,720 |
|
Total Cost |
$23,489 |
$19,770 |
|
https://www.lendingtree.com/auto/debt-statistics/
https://www.lendingtree.com/auto/avoiding-the-buy-here-pay-here-car-lots/
https://www.cars.com/articles/why-buy-here-pay-here-dealerships-charge-higher-interest-rates-than-banks/
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