Many times we’ve talked about how the general public is on a downward spiral when it comes to their spending and that saving is no longer a priority. Though it is ultimately up to each individual to manage their own finances, I can’t honestly say that society hasn’t played a role in steering us down the wrong path.
For example, let’s take a look at a Virginian woman’s recent new car buying experience. She stopped at the dealership to purchase a new car and went through the usual hoops of applying for her loan. This is no different than anywhere else. What surprised me was the interest rate the dealership tried to push on her (21%)!
Lucky for this woman, she worked at an employer who had an SEG relationship with local Piedmont Credit Union. Her supervisor suggested she check with the credit union on her loan before accepting the dealership’s offer. Dan Veasey, marketing and business development manager at Piedmont, was bewildered at the dealership’s figures after calculating what the CU could offer her.
Piedmont CU was able to cut the woman’s costs by over $4,000! Had her employer not had that SEG relationship, she’d have signed the deal with the dealership and been paying all that money in finance charges over the life of her loan.
This story ended on well, but too many don’t turn out like this. Too many consumers are sucked into high interest loans and finance charges because they aren’t aware that other options exist.
When my wife and I applied for an auto loan, our local credit union was able to grant an interest rate 2% lower than the local dealership. These are the kinds of things that CUs need to be out there talking about in their communities, especially in hard times like these.
Consumers shouldn’t have to suffer when it comes to their finances. CUs can help.
Do you have a recent success story you want to share? Did you help a member realize significant savings over other options? Please share your story with us by clicking on the comments link and submitting your details below.
4 comments so far
1 Denny DeGroote // Jun 6, 2008 at 10:56 am
6-6-08
Excellent story Mike. And those types of stories abound. Credit unions just need to keep on telling them so that more consumers will be able to benefit from the credit union philosophy.
Thank you.
2 Aiden Michaels // Jun 6, 2008 at 1:15 pm
Great story - I think there will be more of these “savings” stories to come as Americans are learning to tighten their purse strings.
Reminds me of a college story of mine. We noticed that the professor would always pick up a penny if he saw it. A jokester in the class put pennies all up the stairs and into the classroom. When asked why he picked them all up - he replied - “I am a child of the depression, we never leave money unattended”
I have never forgotten this story, and have to wonder if it won’t become relevant in future generations again.
3 Dan Veasey // Jun 11, 2008 at 10:04 pm
Hi Mike,
Thanks for circulating this story and for promoting savings. In this situation it was actually a small used car dealer who in all likelihood didn’t have alot of financing options to choose from. Which explains why he gave her a few days to refinance locally before sending the paperwork in.
Here’s another little bit of savings wisdom I got from my first credit union boss several years ago: “If you watch out for the pennies, the dollars will take care of themselves.”
4 Donna Gering // Jun 12, 2008 at 12:46 pm
I worked at Des Moines Telco CU for 23 years and have been here at TMG for 8 years. I remember back in the 80’s and 90’s the credit union would always let the members know of their interest rates compared to the banks. Thru monthly letters, signs in the building and at the drive-up. Our loan officers were always busy with car loans.
Like you said Mike, the credit unions need to get the word out to their members. This, in turn, could bring in new members.
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