Credit Union Auto Loan Promos Heat Up

Banks often offer promotions to entice consumers to do business with them. Getting a free toaster when opening a checking account is a well-known favorite, and we’ve seen lots of other giveaways as well.

It’s no different on the auto finance side, especially in the summertime, and particularly at credit unions. From cash back to free gas, AFN.net spied a bunch of credit unions taking creative steps to bolster both their member numbers and auto originations.

SKIP-A-PAY

• At San Diego County Credit Union (SDCCU), qualified new borrowers can skip their July and August payments throughout the term of their loan for a one-time, non-refundable fee.
• For a $25 fee, Insight Credit Union in Leesburg, Fla., offers skip-a-pay for borrowers with a checking account and a loan set up for autodraft.
• Austin, Texas-based United Heritage Credit Union members can skip their June, July, or August payment, which is, naturally, good for them, but they can also do good for their community by donating half of the skip-payment fee to the United Heritage Charity Foundation, which helps local projects and organizations throughout the year.

Upside: Summer is generally a time when many families take vacations, so going sans car payment, even just for a month, could mean an extra day at a theme park, an extra night at a beachside resort … or it might come in handy when the A/C goes on the fritz. At any rate, extra cash is never a bad thing.

Downside: After having a nice chunk of change in their pockets, it may be hard for borrowers to get back into the monthly payment groove. It’ll be interesting to see if these credit unions see a rise in delinquencies come fall, though Insight Credit Union’s auto-draft function should make getting back on track a no-brainer.

FREE GAS 

• Through June 30 at 66 Federal Credit Union, which has branches in Oklahoma, Texas, Kansas, and Arkansas, borrowers can refinance their car and be in the running to win free gas for a year.
• Once a customer closes an auto loan with St. Louis-based American Eagle Credit Union, he can spin the “Wheel of Deals” and land a giftcard, travel mug, car flashlight, or free gas for a year.

Upside: Gas prices often rise in the summer, so anything that helps reduce the impact is typically a plus. 

Downside: 66 Federal’s giveaway is only open to new loans for 2011 or newer cars.

CASH BACK + DEFERRED PAYMENTS 

• At Community Choice Credit Union (CCCU) in Johnston, Iowa, borrowers can refinance an existing auto loan and pocket $200, plus get rates as low as 1.9% with no payment for 90 days (there’s that skip-a-pay element again).

• Credit Union of Denver is running a similar special in which refinancing clients can get $200 cash, a deferred payment, and “at least” 2% off their current auto loan rate.

Upside: Cold, hard cash is always good. 

Downside: At CCCU, the minimum loan amount is $7,500, and the cash incentive is based off the total loan amount. To actually get $200 back, the loan would need to be $25,000 or more. 

SPECIAL GRAD PRICING

• Ent Federal Credit Union in Denver offers special graduate auto loans with special rates and no down payment as a way to help these former students establish a credit history.

Upside: It’s often difficult to establish a credit history, especially at a young age, so a promotion like this could be a great way to start building a credit score.

Downside: The promo is open to four-year degree holders from accredited universities or colleges who meet specific income requirements or have a job-offer letter that includes a starting salary/income at the time of the loan. As a holder of two different degrees from a two-year school, it doesn’t seem fair that my peers are exempt, especially since they could have just as good job or income opportunities as their four-year counterparts.

Banks often offer promotions to entice consumers to do business with them. Getting a free toaster when opening a checking account is a well-known favorite, and we’ve seen lots of other giveaways as well.

It’s no different on the auto finance side, especially in the summertime, and particularly at credit unions. From cash back to free gas, AFN.net spied a bunch of credit unions taking creative steps to bolster both their member numbers and auto originations.

SKIP-A-PAY

• At San Diego County Credit Union (SDCCU), qualified new borrowers can skip their July and August payments throughout the term of their loan for a one-time, non-refundable fee.
• For a $25 fee, Insight Credit Union in Leesburg, Fla., offers skip-a-pay for borrowers with a checking account and a loan set up for autodraft.
• Austin, Texas-based United Heritage Credit Union members can skip their June, July, or August payment, which is, naturally, good for them, but they can also do good for their community by donating half of the skip-payment fee to the United Heritage Charity Foundation, which helps local projects and organizations throughout the year.

Upside: Summer is generally a time when many families take vacations, so going sans car payment, even just for a month, could mean an extra day at a theme park, an extra night at a beachside resort … or it might come in handy when the A/C goes on the fritz. At any rate, extra cash is never a bad thing.

Downside: After having a nice chunk of change in their pockets, it may be hard for borrowers to get back into the monthly payment groove. It’ll be interesting to see if these credit unions see a rise in delinquencies come fall, though Insight Credit Union’s auto-draft function should make getting back on track a no-brainer.

FREE GAS 

• Through June 30 at 66 Federal Credit Union, which has branches in Oklahoma, Texas, Kansas, and Arkansas, borrowers can refinance their car and be in the running to win free gas for a year.
• Once a customer closes an auto loan with St. Louis-based American Eagle Credit Union, he can spin the “Wheel of Deals” and land a giftcard, travel mug, car flashlight, or free gas for a year.

Upside: Gas prices often rise in the summer, so anything that helps reduce the impact is typically a plus. 

Downside: 66 Federal’s giveaway is only open to new loans for 2011 or newer cars.

CASH BACK + DEFERRED PAYMENTS 

• At Community Choice Credit Union (CCCU) in Johnston, Iowa, borrowers can refinance an existing auto loan and pocket $200, plus get rates as low as 1.9% with no payment for 90 days (there’s that skip-a-pay element again).

• Credit Union of Denver is running a similar special in which refinancing clients can get $200 cash, a deferred payment, and “at least” 2% off their current auto loan rate.

Upside: Cold, hard cash is always good. 

Downside: At CCCU, the minimum loan amount is $7,500, and the cash incentive is based off the total loan amount. To actually get $200 back, the loan would need to be $25,000 or more. 

SPECIAL GRAD PRICING

• Ent Federal Credit Union in Denver offers special graduate auto loans with special rates and no down payment as a way to help these former students establish a credit history.

Upside: It’s often difficult to establish a credit history, especially at a young age, so a promotion like this could be a great way to start building a credit score.

Downside: The promo is open to four-year degree holders from accredited universities or colleges who meet specific income requirements or have a job-offer letter that includes a starting salary/income at the time of the loan. As a holder of two different degrees from a two-year school, it doesn’t seem fair that my peers are exempt, especially since they could have just as good job or income opportunities as their four-year counterparts.