2025 Spring Auto Loan Campaign
Get Off the Beaten Path
In the market for a new or used vehicle or looking to refinance? We're here for you with rates that'll freshen up your auto loan!
Campaign Target:
- Encourage members to take advantage of our auto loan promotions for new, used or refinancing
- Focus on both current and prospective members.
Campaign Timeframe:
- April 1 - August 31
Statement Insert
Emails
- First Email | Date: 4/1
- Second Email | Date: 4/20
- Third Email | Date: 5/15
Flyers
Ancillary Targeted Campaign - "Putting the Pieces Together"
The Minecraft movie premiers in theaters April 4th. It is the best selling video game of all-time, with nearly 170 milion monthly active players.
The majority of these gamers fall within our All About Me membership age.
Let's have a little fun! We've 'minecrafted' our campaign imagery, and will be targeting communication outreach to our AAM / 18-30 year olds.
How can you help? Should you engage with one of our AAM members, your messaging regarding the features and benefits of our auto loan remain the same. However, you may choose to provide them with a "Putting the Pieces Together" teller card instead!
Teller card: Front | Back
Email: Date - 4/1
Features/Benefits
Beach Municipal FCU offers auto loans for new, used or refinanced vehicles, with the following benefits:
- Low, Fixed Rate ~ saving you money over the length of your loan
- New or Used same rate
- Save an additional 1/2% APR*, by taking advantage of our relationship discount options ~ that's even MORE savings
- No Application Fee
Cross Sell Reminders
Always open the Opportunity Box! Is there already an existing Opportunity or open Referral?
Remember, a conversation is not one magical question. Knowing how to discuss the features and benefits of our products and services helps the members understand “what’s in it” for them.
You: “It doesn’t look like you have a car loan with us, Mr. Smith. I’m not sure if you have a loan elsewhere or not, but our rates are as low as
3.25%, so we may be able to save you some money.”
Don’t forget to look for clues.
You: “I see dealer tags on your car. Is it new? How exciting! Where did you get it?”
Member: “Thanks, we just picked it up last night from ABC Car Dealership. We got a great price.”
You: “It’s beautiful. It doesn’t look like you financed it with us, but hopefully you got a good deal.”
Member: “We’re getting six months interest-free and they kicked in the all-weather package at no cost.”
You: “Nice! Well, let us know when the six months are up and you have to start paying the interest. We may be able to get you a lower rate and
save you some money. That way you benefit from the six-months no interest, get a free all-weather package and a lower rate for the rest of
the loan. Did you get the warranty?”
Member: “We did, but I’m starting to regret that. It was super expensive!”
You: “Yeah, those can be absolutely crazy, but some warranties make good sense because they really save you money if things go wrong. Our Route
66 warranty will blow your mind. It offers so much and costs a fraction of what most dealers charge. Most warranties have an out-clause, so if
you decide to cancel your coverage, call us. You can add our coverage at any time, even if we don't have the loan. If you’d like, I can have
someone reach out to you and send some information.”
WIIFT?
Information to help you understand What’s In It For Them
- 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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