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By Enterprise Car Sales
Checking out a snazzy, new 2005 vehicle? Beware. According to the experts at
Kelley Blue Book, in three years that new car could lose up to 73 percent of
its value. At best it will retain a mere 62 percent of its value after three
Depreciation is the dark cloud hanging over new car purchases. While most vehicles
lose 15 to 20 percent of their value each year, the first year tends to hurt
the most. In fact, the two-minute drive off the lot can cost some owners up
to 15 percent of their new vehicle’s value. This instant loss reflects
the difference between the wholesale price – what the dealer pays –
and the retail price – what you pay.
For credit union members unwilling to throw away money on depreciation for
that new-car smell, a high quality, late-model used vehicle is the answer. Used
automobiles have cost-saving benefits above and beyond the depreciation. Some
of the benefits of buying a used car include:
In 2003, more than 40 million used vehicles were sold in the United States.
Credit unions are financing many of these vehicles and offering members good
deals. In fact, credit unions are making headlines for their superior used-car
financing options. This past summer, Newsday encouraged readers looking for
a bargain to check out their local credit union, citing that credit unions,
“beat banks by an even larger margin for used-car loans, averaging 5.5
percent, compared with 8.62 percent at banks.”
Despite this competitive advantage, credit unions must still compete with dealer
financing. Research shows that credit unions are losing potential car loans
to dealership-brokered deals – 70 percent of credit union members who
buy a vehicle from an independent or franchised dealer also finance the vehicle
through the dealer. One way of avoiding this competition is to work with car
sales companies that steer buyers back to the credit union.
For instance, thousands of credit unions have partnered with Enterprise Car
Sales, due in large part to Enterprise’s guarantee that credit unions
receive 100 percent of members’ used-car loans 100 percent of the time.
Enterprise offers consumers more than 120 makes and models of high-quality,
late-model ASE-certified used vehicles that are priced below NADA or Kelley
Blue Book values, and include a 12-month/12,000-mile limited power train warranty.
Best of all, members have no fear of depreciation or even buyer’s remorse
from driving off the lot. Every Enterprise vehicle comes with a seven day/1,000
mile repurchase policy.
Don’t let the dark cloud of depreciation rain on members’ car buying
experience. Remind them of the value of used vehicles and send them to a company
that will guarantee you get the loan.
This sponsored content article is provided to the credit union community for shared insights and knowledge from a recognized solutions provider in the industry. Please note that the views and opinions offered here do not reflect those of Callahan & Associates, and Callahan does not endorse vendors or the solutions they offer.
If you are interested in contributing an article on CreditUnions.com, please contact our Callahan Media team at email@example.com or 1-800-446-7453.
February 14, 2005
7/26/2012 04:12 PM
Our credit union just bought into the Enterprise Car Sales idea. It's great that the credit union gets to Finance the used vehicles 100 percent of the time, but credit unions should be careful when it come to GAP & MRC insurance coverage because Enterprise can easily take these $ right out of the credit unions pocket.
This would be great if you could sell them for what they are worth. I have to many horror stories with buying rental cars.
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