CLARK, N.J.-With the recall of millions of Toyota models reverberating throughout the country, Aspire FCU here is making an effort to calm any fears its Toyota-owning membership may have-and also generate additional loan volume.
The $183-million AFCU has sent letters to more than 200 members who financed Toyotas with the credit union, offering them the opportunity to trade in their cars for a new vehicle while honoring the original loan amount and rate. Aspire Federal is also offering an additional $5,000 on top of the previous loan if it was underwater.
"We knew that a lot of our members have Toyotas and they were going to be affected," said Laura-Ilene Harding, VP-marketing and business development. "Since many people buy cars with no money down, the likelihood that they will be upside down in their existing loan is a good possibility. If they originally planned to keep their vehicle for an extended period of time, they would not have worried about that ahead of time. We wanted to be sure that members would have the ability to trade in their existing vehicle... and this was one way to ensure that could happen."
As of press time, one member had taken advantage of the deal, closed a loan, and traded in his Toyota Corolla. Four other loans have been approved as a part of this offer and were in the pipeline at presstime.
Over the last several months Toyota has recalled more than nine-million of its cars around the globe for problems related to unintended acceleration in a number of its conventional vehicles and electronic brake glitches in some of its hybrid models.
In a release Aspire FCU assured its members that the recall and repairs by Toyota should resolve the problems with their vehicles and is simply offering this solution as a way to ease any lingering fears.
"The safety and well being of our members, financial and otherwise, is our primary concern," President/CEO Thomas O'Shea said in a statement.
