US Federal Credit Union recently lowered their new and used auto loan rates to “as low as 4.14% APR.” This is a time-sensitive or “promotional offer.”
The product is labeled as “POW auto loan rates,” and is only good for vehicles manufactured in 2006 or higher. As a kicker, the annual percentage rate may be discounted an extra 0.25% APR if you purchase a green vehicle. This earth friendly discount is growing more common as banks and credit unions aim to assist in the reduction of carbon emissions. A few weeks ago we mentioned one specific credit union offering 0.50% APR discounts on auto loans when purchasing green vehicles.
Details of USFCU’s new and used auto loan offer:
Choose from a variety of terms and payment alternatives while taking advantage of these additional offers from your US Federal Credit Union:
- Green Discount – .25%APR discount for vehicles rated over 25 miles per gallon
- Used cars at new rates (2006 vehicles or newer)
- Give your budget a break – No Payments for 90 days (interest will accrue during this period)
- Protect Yourself – Mechanical Repair Coverage will protect a variety of mechanical and electrical repairs on your used vehicle purchase. Ask for it when you apply.
- Shop with confidence – approval in as little as 30 seconds.
APR=Annual Percentage Rate. Rate represented effective 08/31/2009, includes green auto loan discount, automatic payment discount and is subject to change. Rate presented for model years 2006 and newer. Interest will accrue during first 90 days without payments. Miles per gallon as rated by fueleconomy.gov.
Auto loan rates are expected to continue to head downward in conjunction with other loan side banking products such as mortgage or refinance rates. The FED has made it quite clear that they aim to stimulate all kinds of borrowing by keeping key rates historically low. This is great news for anyone looking to finance a large purchase such as a new or used car, however, it’s not so great news for those looking to invest in a FDIC-insured savings product.
Check with your local credit union before applying for a loan with a dealership. Coming in with a loan already in place by a bank or credit union effectively makes you a cash buyer in the eyes of the dealership and this may give you greater leverage in the negotiation process.