Connecticut's American Eagle Federal Credit Union is finding the ever-increasing promotions by dealers during the long holiday weekends is a good time to push auto loans, and over Presidents Day it will be plugging what it calls a below-market 1.74% rate.
The $1.3 billion AEFCU of East Hartford said in recent months it has adopted what it calls aggressive rates on personal and auto loans to spike lending volume.
On the 1.74% rate extended through March 3, “we feel that we have an aggressive offer at a relevant time as many local auto dealerships look to Presidents Day promotions to bolster their sales,” said Brian Kennedy, vice president of marketing/public relations.
The 1.74% rate applies to new and used 2009-2012 models.
Over Christmas-New Year’s, American Eagle advertised 12-month Holiday Helper loans with a 3.75% rate. It also offered a debt-consolidation special with a 6.5% rate with a 36-month term. American Eagles' Holiday Helper promotion was featured in a recent national roundup of bank and CU campaigns in a Wall Street Journal online article.
“Credit unions everywhere are doing what they can to get some momentum in lending so we thought Presidents Day is a good time,” said Kennedy, echoing a Callahan Associates report out this week that contends CUs reported strong loan origination numbers for the fourth quarter of 2011 and expect to see continued gains this year in auto lending.