Online Service Offers Special Balloon Loan

Saying it is seeking a way to make the car-buying process "fun," United Heritage Credit Union has introduced an interactive, web-based "Auto INSITE" service that includes an "assured value" balloon loan program.

The balloon loan program was developed by Auto Financial Group (AFG), Houston, with United Heritage registering it as "United Auto Advantage."

According to the credit union, the on-line balloon program is a residual-based finance product that allows the borrower four options at the end of the term: keeping the car by paying it off; keeping the car by refinancing the loan; turning in the car at the end of the term with the option of selling the car and keeping any profits above the loan amount, or turning in the car and walking away.

UHCU members can go online at uhcu.org and get auto prices, including dealer MSRP, on any make or model. An on-line calculator allows members to compare a conventional loan against the United Auto Advantage loan. Terms on the latter range from two to five years. Payments are based on the purchase price, less residual value plus interest. "Since the borrower is not paying a principal reduction on the residual value, the monthly payment is competitive with a lease and much lower than a conventional loan," said the credit union, which is using newsletters, statement inserts, posters, radio and more to promote the service. "