Somebody out there isn’t listening–no make that 90% of car buyers aren’t listening–
According to J.D. Powers & Associates less than 10% of buyers of new cars in 2006 financed with their Credit Union- that despite the fact that Credit Unions had the longest average loan term (60.8 months) and the 2nd lowest average APR (5.7%), and that includes all the scam rates (1%, 0%, etc, etc). So if its cheaper to finance at a Credit Union and the term is more advantageous why do over 90% of consumers finance elsewhere?
Well it’s simple–big companies like E-Loan & Capitol One, along with Banks and Captives (GMAC, Ford Motor Credit) want auto loans…Capitol One even invested in a company that owns an auto brokerage in California. They want your loan because they make a profit. That is business–but it is the consumer’s business to do what is best for themselves and most of the time that is to finance with a Credit Union.
But the way–Auto Solution finances only through its partner Credit Unions.
Here is an interesting item. Maserati will offer 1.9% financing on its $110,000 Quattroporte. Wouldn’t you think someone who could afford a $110,000 car would just write a check? Only in America.