May 23, 2008
Yesterday while visiting one of our member companies, I met a very nice woman who had purchased a car just a few days ago. Her supervisor had wisely suggested that she check on a loan at the credit union instead of keeping the loan from the dealership. So she came to speak with me. When I calculated that her current interest rate was 21% I thought I had made a mistake, but she confirmed that I was correct. I thought perhaps she had a very rocky credit history but that was not the case. It wasn’t perfect, but it certainly wasn’t poor either. Fortunately the dealer had not processed the paperwork and she had a few hours to get a loan through our credit union.
So we made her a new loan which saved her loads of money! Below you’ll see just how much she saved…
Over $4,000 Dollars!!!! She chose to use some of that savings to buy our 48 month mechanical breakdown protection and GAP protection for her loan. Her total cost of the loan even with those add-ons was still $2,000 less than the dealer loan! As you can see, here’s yet another happy credit union member. And that’s who it’s all about!
May 8, 2008
This post is about the new Mechanical Breakdown Protection available through Piedmont Credit Union.
I am the classic “do-it-yourself-er”. But when my wife’s Acura started having transmission problems late last year I started to think, “maybe I shouldn’t have hung up on those people who call and try to sell extended warranties?” Acuras are not cheap cars and neither are their parts. Did I mention the warranty had expired several thousand miles ago? So I made the dreadful trip to a nearby Acura dealership and nicely explained that I didn’t buy an Acura to see the transmission go bad so soon, and even though it was outside of any warranty coverage I humbly asked if they could help me out a little. What really impressed me was how they pretty much agreed that Acuras are one of the highest quality cars available and that it should not have had this type of problem at this point of it’s life. So Acura corporate agreed to discount the cost of the transmission but I would not have any further warranty on the discounted parts like they usually give. I was pretty satisfied because it appeared that I would be able to pay for these repairs without too much financial discomfort.
Now for all you readers who think the next part is about how the dealership found other things wrong and boosted the price by a thousand dollars, I hate to disappoint you. When my wife picked up the car, the total price was $800 LESS than what they quoted me and it was going to come with a new 36,000 mile warranty! I’m now an Acura fan for life!
So what’s the moral of this story? I think it’s this: Consider purchasing an extended warranty for your vehicle. When you compare it’s cost to that of major repairs the choice is easy. Do the math.
New non-discounted transmission installed by dealer=$4,500.
Cost of Piedmont CU Mechanical Breakdown Protection=$1,565.
Mechanical Breakdown Protection is very affordable when seen from this point of view. Plans start around $900 and can cover almost any car that runs. You can read more about it on our main website here. Oh, if you decide to buy an Acura, just be sure to do your financing at the credit union!