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!
November 20, 2007
This morning one of our board members asked me to figure out how much money our members can potentially save by financing things like appliances and furniture at the credit union instead of at the store or on a credit card. Here are the results.
To buy at 25 cubic foot refrigerator you will spend around $1250. That’s also pretty close to the cost of a really nice TV, an Apple MacBook, or a furniture suite. To borrow this amount at a typical store account rate of 21% and paying minimum payments of about $40 per month, the total interest paid would be around $575. It would take over three years. (That’s if you start making payments immediately. Sometimes stores offer ‘no payments for 6 or 12 months’. That just postpones your having to pay for it and stretches the loan out longer than it needs to be, oftentimes longer than the warranty on the item you bought.)
The same loan when made at our credit union’s average personal loan rate of 12.31% is much cheaper. At $76 per month that same amount of money would be paid off in 18 months and would only cost you $125 in interest charges. That’s an extra $350 that you’ve saved and you never missed the money because there’s the added convenience of payroll deduction payments.
In all fairness if you were to pay $82 per month on the store account you would bring your total finance charges down to $218 and pay it off in 18 months. That’s only about $100 that you missed out on saving! Then there’s the
pleasure hassle of dealing with the store employees who have foreign accents and try relentlessly to sell you add-on products that you’re not interested in. With that there’s no comparison to hanging out with the nice folks down at the Piedmont CU.
So to make sure you’re getting a good deal, do a little figuring before you do any signing. Here’s a link to our calculators page which among other things can help you figure out how much you can afford before you go shopping. Speaking of shopping, the credit union will be open the day after Thanksgiving to serve you if you run across any fantastic deals.