HOUSTON-Smart Financial CU is ready to meet or beat any competing auto loan rate or it will give members $100. "The offer just started, and so far we have not paid anyone the one-hundred bucks," said Dana Rawlings, SVP and COO.
The $410-million CU has set a floor of 3.75% APR, which is its current 36-month rate for A paper. But if it has to, it will apply that rate to any term and credit score to get the business. Rawlings hopes the deal grabs some attention, which Smart Financial is advertising in newspapers. The offer is aimed at banks, and advertising notes the promotion cannot be matched against manufacturer's subvented rates. Smart Financial performs a monthly analysis of local market rates, and the average is around 3.95%. Bank of America is the toughest competitor with a 3.60% advertised rate, with another 25-basis-points off for 20% down. Overall, Smart's rates are 4.49% for 48 months, and 4.99% for 60.
Even when SFCU hands out $100 to a member, Rawlings said SFCU will begin aggressive cross selling. "We might not be able to beat every auto loan rate. But I promise you we can beat anyone's credit card rate, and we'll look at balance transfer and debt consolidation. Maybe even refinance their home."
