CU members reap cars in a hayfield

DALEVILLE, Ala. - Army Aviation Center Federal, Fedapostal Federal, and BENCO Credit Unions members experienced one-stop auto shopping at an unusual location- in the middle of a 30 acre hayfield here. Approximately $8 million dollars and 389 cars, recreational vehicles and boats changed hands during the credit unions' two-day New Car/ Recreational Vehicle/ Boat Show & Sale. What began 16 years ago as a single town event to develop relationships with local auto dealers while boosting low loan to share ratios, has grown to include dealers from Enterprise, Dothan, Ozark and Montgomery, Alabama. "Our second year holding the event allowed us to involve other larger towns and we sold 800 cars in two days," said AACFCU President/CEO Jim Mitchell. "It is a great program because the relationships we establish within those two days carry on throughout the year." According to Mitchell, much of the success is the result of the strict guidelines participating dealers must follow so that the members can relax and not worry about gimmicks or buy down arrangements. Fair prices are set by the dealer and invoiced at check-in. After each sale, pre-approved loan drafts are verified against the invoice before the draft can be paid. Members had more than 2,000 new and program vehicles from which to choose. Heavy promotion begins six months prior including 100,000 direct mail invitations and radio, television and full page newspaper coverage at a $25,000 price tag of which $21,000 is absorbed by the auto dealers. This year's event, while successful, felt the effect of military base downsizing. According to Mitchell, loan-to-share portfolio is at a historic low of 75%, of which auto loans make up at least 60%. Yet, during the two-day event, participating credit unions financed more than $4 million in loans. "Members tell us they not only look forward to it but actually wait for our sale to buy their cars, boats or recreational vehicles," said Mitchell. -mbourjolly@cutimes.com