Problem:
A report entitled “Steer Clear: How Credit Unions Help Car Buyers
Avoid Predatory Loans,” by William Myers, Field Coach, National
Credit Union Foundation’s REAL Solutions™ Program and
Senior Fellow at The Aspen Institute, makes a strong case for helping
people of modest means get access to reliable and affordable cars.
As the report states, cars provide convenience, flexibility, safety
and the opportunity to work for employers that are not located near
public transportation.
Solution:
Enterprise Car Sales, which specializes in working with credit unions
to increase auto loan volume, developed the Borrow Smart.
Buy Smart. Program. In addition to
providing access to great cars and service at affordable prices, the
program includes an educational component that offers professional
guidance through the credit union to help members choose the car that
best meets their needs and budget. Cars are priced below Kelly
Blue Book on an extensive selection of high-quality,
late-model used vehicles, including lower prices on specially selected
models.
Results:
The Borrow Smart. Buy Smart. program
has been successfully piloted in Santa Ana, California by SchoolsFirst
Federal Credit Union (formerly Orange County Teachers FCU). Following
a pilot program that began in one location, SchoolsFirst FCU subsequently
expanded its program to three branches. More than 60 Members have
purchased low cost, reliable vehicles through the program over the
last year. As a result, SchoolsFirst FCU announced in November 2008
that the program was being rolled out to all 28 branches. To support
the rollout, promotional materials in English and Spanish include
brochures and a Web page on the credit union’s website.
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