Low-Interest Auto Loan Op-Ed Spotlights CUs
The New York Times pointed to the National Credit Union Foundation’s efforts to help borrowers with poor credit get car loans.
In an opinion piece on More Than Wheels, a program that provides low-interest loans on new or used cars, the guest author responded to questions from readers on some of the logistics. Since its launch in 2001, More Than Wheels said, it has helped nearly 1,500 families finance more than $15 million in loans.
Author Lisa Margonelli wrote, “With its emphasis on financial education and credit repair, More Than Wheels will likely need to grow organically to maintain its integrity. But many other institutions could, and should, get involved in providing low-interest auto loans.”
“Analyst Bill Myers found that lending autos to people with poor credit can be profitable for credit unions, but they need to help clients select good cars, work more closely with them to ensure repayment and provide things like mechanical breakdown insurance — in some ways services similar to those provided by More Than Wheels, but in a more standardized format,” Margonelli wrote.