GLENDALE, Calif.-Los Angeles said a partnership it built with the City of Los Angeles will continue into 2012.
The $721-million CU partnered with the city on the "ShopLA" program, which initially featured a 50-basis-point discount off its regular new and used vehicle rates. The credit union used the promotion to drive new membership, telling locals they can join LAFCU and immediately apply for a vehicle loan. Members were eligible to save on the purchase price, as well, by combining the lowered rates with dealer incentives provided through ShopLA's participating dealers.
"We have seen many LAFCU members save money on their vehicle purchases by taking advantage of this and other special offers," said LAFCU CEO John Dea. "Our primary goal was to encourage local residents to save money by buying their next vehicle, truck or motorcycle right here in Los Angeles. With the special, half-percent discount off our regular, low new and used vehicle rates, local residents may save hundreds of dollars in finance charges, which can really add up. If we can help LAFCU members save money and increase the city's sales tax revenue, we are happy to do it."
Additional Partnerships
LAFCU and the city are now purusing additional partnerships. Earlier this fall, LAFCU and the city launched a new ShopLA City Visa Platinum Plus credit card, available to all Southern California residents, which offers triple reward points for all purchases at merchants in Los Angeles, including most of the adjacent San Fernando Valley, and single rewards points on all other purchases.
The ShopLA City Visa rewards points may be redeemed for travel, merchandise or gift cards through CURewards.com, or used for consumer loan rate discounts at LAFCU. The card has a six-month 0% introductory rate for new LAFCU credit card holders, then variable rates as low as 9.9% APR. "This could save card users thousands of dollars in interest charges," said Dea.
Similar to the ShopLA Vehicle loan discount program, those who get the card will help the city, because for every $10 in sales tax paid in Los Angeles, the city earns approximately $1, which goes to support Los Angeles City police, fire, libraries, parks and other services.
Asked what lessons have been learned during the course of the ShopLA partnership, Dea said the credit union is "learning that success takes time."
"We are confident that the results from both the ShopLA vehicle loan discount and ShopLA Visa card will continue to build in the next few years," he declared. "Both programs were marketed similarly and are for an indefinite period of time. We would not have done anything differently. We look forward to seeing our members take advantage of the ShopLA vehicle loan discount and ShopLA Visa card in 2012. We do not plan to make any changes to either program at this time."
