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Snow Problem - We've Got Your Auto Loan

Authored By: Celeste Thompson on 10/24/2025

Holiday Auto Loan Promotion

Staff Guide: Lending Promotion

We're kicking off a new campaign, "Snow-Problem ~ We have your auto loan" to highlight a crucial service: our Vehicle Loans! This service provides essential financial assistance for our members' vehicle purchases, offering peace of mind through competitive rates, flexible terms, and protection from predatory lending practices.

Now, we're asking for your help to spread the word so even more members can benefit from this valuable offering.

Campaign Overview

This campaign will primarily leverage digital and internal strategies to educate and engage our members about the benefits of an auto loan with Beach Municipal FCU.

Campaign Target

Our primary audience for this promotion includes:

Existing Members: Especially those who are in-market for a new or used vehicle or looking to refinance an existing high-rate loan from another lender.
Potential Members: Individuals looking for a secure and affordable auto loan solution.

Persuade members to apply for an auto loan with us by offering:

First payment paid (up to $300, during the month of November only) if the member purchases a vehicle from Enterprise Car Sales.
No payments for 60 days (November 1 - December 31) on any new or refinanced vehicle loan.

Promotion Strategies

The main goals of this promotion are to:

Persuade members to learn more about vehicle loans and the risks of dealer financing.
Encourage members to apply for a low-rate auto loan as a primary financing tool.
Promote the credit union as a way to save money on interest and high dealer fees.
Generate applications for new and refinanced Vehicle Loans.

Campaign Timeframe

The campaign will run from November 1 - December 31, 2025

Marketing Channels & Materials

We will be utilizing various channels and materials to reach our members:

Teller Cards: Available at all branch locations.
Statement Inserts: To be sent with October statements.
Emails: A dedicated email campaign will be deployed.
Flyers & Posters: In branches.
Social Media: Posts on Facebook, X, and Instagram.

Information to help you understand What’s In It For Them

Helps members purchase a vehicle from a partner (Enterprise) with an added incentive.
We offer low rates, often significantly better than dealer financing.
Discount of ½% APR with eAccounts.
Fast & easy online loan processing.
Pre-approvals available so they can shop with confidence (and cash in hand).
Our loans offer protection from predatory Buy Here, Pay Here (BHPH) dealer practices.

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	$3,720

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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