Randolph-Brooks Federal Credit Union has surpassed the $1 billion mark for its auto loan portfolio ― a first in the institution’s 59-year history.
The Live Oak, Texas, credit union chalks up the milestone, in part, to a 1.9% APR promo on auto loans, which debuted in early June. Since then, RBFCU’s auto loan and refinancing volume have increased. “At the same time, we’ve also seen many new members join RBFCU because of our low rates, then transfer their other accounts to us because they receive a superior value on overall products and services,” said Chief Lending Officer Mark Sekula in an article in the Credit Union Times.
With interest rates set to remain low through mid-2013, thanks to a Federal Reserve Board decision yesterday, might the auto loan refi business pick up?
As Sekula put it: “Refinancing is one of the most profitable decisions a purchaser can make; by refinancing a vehicle, you essentially pay less interest for the same product, and put more money back into your pocket.”
