Auto Loan Is A Savings Plan
This entry was posted on 7/24/2007 4:20 PM and is filed under Credit Unions,Lending.
Day Air Credit
Union has developed a way for their members to save money with a new product
which, according to DACU's Colleen Scott, no other financial
institution has offered.
"There is a real concern that people
do not save anymore," Scott said. "Many people do not have down
payments for cars or car repairs that unexpectedly come up. To help
prevent this problem we created the Auto Loan Plus."
The Auto Loan Plus in an auto loan with a built-in savings account.
"In
this day and age, people put money into a 401K and that's about it,"
Scott said. "We do it because we are so used to the money just being
taken out of our check. The Auto Loan Plus works in the same manner. We
set-up your payment for the loan incorporating your savings amount."
For
example, if your car payment is $250 and you want $20 to go to your
savings each month, your payment will actually be $270. This money goes
into a high dividend earning account so if unexpected car repairs come
your way you'll have the money. Or, best case scenario you will be able
to use the money at the end of a loan to put a down payment on a new
car.
"It really is a unique product," Scott said.
