WENTZVILLE, Mo.-1st Financial FCU here had a dozen merry days with its "12 Days of Christmas Auto Loan" special.
From Dec. 12-23, 1st Financial offered auto loans of up to 60 months starting at 1.99%. Michelle Rosner, VP of sales and marketing, noted that the promotion was a repeat of 1st Financial's earlier Black Friday special, which offered the same rates and terms, but only for one day.
"When that ended we said, 'What else can we do that's a bit non-traditional to generate that same type of enthusiasm and excitement?' " she said. CEO Frank Nelson quickly suggested the 12 days of Christmas.
New and used vehicles (2009 or newer, with 50,000 miles or fewer) were eligible for the special rate. 1st Financial did not put a cap on the number of loans it would make. "I wish there was that problem," quipped Rosner.
In total, 1st Financial made 50 of the loans for a total of $923,000. The Black Friday special was a bit more successful, with slightly more than 60 loans for just under $1 million. Rosner said most applicants received the 1.99% rate, with the remainder getting a 3.99% rate. Overall data is not yet available, but Rosner said that one branch's weighted average rate was 2.20% for 17 loans closed.
The $213-million, 36,000-member CU marketed the offer via e-mail blasts and postcards to a select group of 3,400 members. It also offered a pair of prizes for approved applicants-a flat screen TV or one month's loan payment up to $400-but Rosner noted that the incentives weren't big drivers. "They think they're a nice value-added feature, but people are shopping rate. Right now it's about how it hits them in the pocketbook."
Rosner said 1st Financial encountered little competition on rate. For now, it isn't planning a similar promo. "It's no longer a special if you continue doing it," she said, pointing to large retail chains such as Kohls and Bed Bath and Beyond, which consistently offers coupons for 20% discounts.
"We'll have a Spring special, but it probably won't be 1.99%," she said.
