“Easy to deal with” and “credit union” don’t really belong in the same thought bubble, in my experience… You don’t really go to one for concierge service, you go there for cheap money.
I just suffered significant abuse and neglect at the hands of DCU on a (traditional) auto loan to buy out my lease, but I expected that going in.
In the past 10+ years, this was probably the slowest, most aggravating experience I’ve had on a financial transaction (that wasn’t a mortgage), but I would do it again for this:
I’m likely going to go with a balloon for the TRX I’ll be keeping. I’ll be putting a big down payment (around 30k). Just trying to figure out if I want a base which would be around 280 a month or a lightly optioned level one which would be close to 390 a month.
This would be for a 5 year term. And I should have equity at the end since the balloon payment will be just over 31k.
On a interesting note, one of the CU website says that the car can be returned after the payments are fulfilled. I’ll have to check with them but that seems pretty low risk if you find yourself underwater on one of these loans. I’m sure there’s a fee for that, but can’t be a bad thing since it adds an extra layer of protection.
This actually has value which can be compared against the considerable additional interest expense of a balloon product.
One could legitimately ask oneself the question, “Is the cost of the insurance coverage worth the premium charged for the product?” [no pun intended] and then make an informed decision.
Yeah, and I believe the dispo fee is only $195 to return the vehicle. Excess mileage of only $.10 a mile too. Gonna see if I can get them on the phone today, but hoping it’s around 3.74%
Hanscom Fed CU - let’s you register if you’re a member of Nashua River Watershed (check their website for exact name) it’s a $35 membership/donation fee
I did that and was able to successfully be a member. Cali I don’t know - since Cali doesn’t make it easy for it’s resident anyways. I can confirm it works for Texas and IL residents.
Ameri CU doesn’t make it easy and their service denied they don’t serve out of NY - their website says you can donate and be a member. CAPED denied me saying my identity doesn’t match their records
CU are the worst to deal with but they have good features
Comparing total cost and monthly payments to purchase a 2022 Camaro ZL1 w/ $25K down.
2022 CHEVROLET CAMARO V8 2D COUPE ZL1 MSRP $70K
_ 24mo BL payment at $287/mo with $25K DAS
_ After 2 years you will pay $287x24 and buyout for $48K worth $68K
Your total cost of ownership is $9888. Your effective payment is $412/mo.
versus
2022 CHEVROLET CAMARO V8 2D COUPE ZL1 MSRP $70K
_ 84 mo Conventional financing at $672/mo with $25K DAS
_ Keep for 2 years, you will pay $672x24 and buyout for $37K worth $68K
Your total cost of ownership is $8128. Your effective payment is $332/mo.
For reference, on Rodo, a 48mo lease is $1085/mo with $6190 DAS.
Keep in mind it’s not the credit unions dictating the terms of the program. It’s the credit unions choosing to offer the AFG contract addendum to permit the return of the vehicle to the lienholder. I can share the actual contract for those interested.
I left this out, somewhat on purpose, because it can complicate the decision making process. While it’s true the disposition fee is only $195, the contract addendum includes mileage limits, and wear and tear limits, both applied as residual value adjustment. Although this is similar to a lease, selling the vehicle to anyone else, other then the lienholder, will avoid enforcement of these considerations.
That’s a good point. At any point during the loan you feel you may need to turn the car in when the balloon is due, it’s a good idea to care for the car as a lease. I wouldn’t modify the car in any way that’s hard to get it back to stock.
Credit Union of Texas is another option. They refer to their program as FlexAuto Loans. I spoke to them on Friday, they said it’s possible for an out of stater to join. They claim their rates are 1.99%. Planning to go with them once I’ve locked down a vehicle.
