Auto Loans, and Chrysler Incentives, Available at Many Credit Unions

by Mike Ellis
TheFirehouse Blog

Tough time to get an auto loan?

Not at credit unions. They’ve avoided the subprime mortgage meltdown and other risky investments that have crippled many segments of the financial services industry, said David Adams, President and Chief Executive Officer of the Michigan Credit Union League.

“One of the critical things affecting auto sales, as you all know, is the lack of affordable financing, especially for people who have a few blemishes on their credit scores,” Adams said. “Credit unions are in a position to lend this money because their structure as not for profit cooperatives,” he added.

Credit unions are in a position to lend. And to sweeten the deal, Chrysler has joined the “Invest in America” credit union loan partnership, which offers affordable financing and additional credit union cash discounts of from $500 to $1,000 on most Chrysler, Jeep or Dodge vehicles. The new discount is in addition to most existing cash discounts.

About 2,500 credit unions representing nearly 25 million customers in 12 states will be eligible in the “Invest in America” program. Those credit unions have an estimated access to about $22 billion available low-cost auto loans, Adams said.

“That’s obviously a lot of cars and trucks and we hope that it provides a great and much stimulus for auto sales,” Adams told reporters on a conference call to announce the program on Tuesday. “This Chrysler program in particular is really positive because the cash rebates layer on top of everything else the consumer does to negotiate the best price.”

The program is scheduled to begin on Dec. 16 and run through June 30, 2009. Credit union members in Arkansas, Illinois, Indiana, Kentucky, Louisiana, Michigan, Mississippi, New Mexico, Oklahoma, Ohio, Tennessee and Texas will be eligible to participate in the program. The eligible credit union members must finance their purchase or lease through their credit union.

“This is not just about discounts and low loan rates for credit union members, it is also about the credit union community being willing and able to offer and important boost for domestic auto sales and ultimately for our national economy,” Adams said.

For more information about the “Invest in America” program, contact Yvonne Malmgren at ym32@chrysler.com or 248-512-1783.