TEMPE, Ariz. — For the second time this year, Altier Credit Union is helping its members put some money back in their pockets with its cash back auto loan.
For the months of September and October the credit union is offering new and existing members the chance to receive up to 1.25% cash back when applying for a new or used auto loan. The credit union offered the same promotion in April and May of this year and reported $5 million in new loans over the two-month period.
"The program was a success when we did it back in April," said Harry Mateer, Altier President/CEO. "Our goal is to give back to the members instead of the auto dealers."
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Mateer described the promotion as a win-win for the member and for Altier. When bringing in members indirectly Altier has to pay a flat rate to the auto dealer, now by bringing in members directly the member can get cash back and a better quality loan. Mateer also said that direct members typically don't refinance as quickly as indirect members, so it's a lower cost to the credit union. Even though the auto dealers don't receive the flat rate when members go directly through Altier, Mateer said they still benefit because it allows them to move their inventory.
With the cash back loan, members are eligible to receive up to $625 back, depending on the size of their loan.
"We look forward to putting some cash back in member's pockets. It's a tough time for many right now, so we are doing anything we can to lessen that burden," said Rico Bautista, senior vice president. "In addition to receiving 1.25% back, members will also benefit from our low interest rates."
Mateer said that he expects this promotion to be even more successful than the one they ran earlier in the year with the new car models.
Over the past four to five months Mateer said that he has definitely seen less activity in the credit union's auto lending.
"I've also seen less quality in loans, which is directly attributed to the economy," Mateer said. "I'm a little surprised I don't see more of these types of promotions being offered in the current market."
Mateer said that he expects the credit union will run the cash back auto loan promotion again in early 2009.
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