ATLANTA-In contrast to financials making noise about low rates that include numerous qualifications to get the offer, one CU is keeping quiet about a 25-basis-point reduction to its standard auto loan prices.
The $3.5-billion Delta Community CU is not letting members know about the quarter-point until they sit down to discuss an auto loan, shared Jason Osterhage, chief lending officer. "We are running this promotion for 60 days. It won't be part of our published lobby rates, either. This way it gives us one of the better rates in the market, and also more flexibility to move that rate up when we think the time is right."
DCCU recently dropped its auto loan rates 50 basis points to 4.25% APR on 24 to 60 month terms for the most qualified borrowers. It also offers 4% for 12 months terms. DCCU believes in "asterisk-free" pricing, and not advertising a rate with "strings" attached to get the deal, said Osterhage, a member of the CUNA Lending Council. Osterhage added that strings are attached to many bank lowball deals, such as having to take an additional service and accept a short term, and consequently the CU is not overly concerned about banks' low rates.
