Invest in America and GM Team to Drive Auto Loans to Credit Unions

Through its partnership with the Invest in America (IIA) program, General Motors (GM) continues to prove its dedication to driving auto loans to credit unions, providing an excellent opportunity for credit unions to secure incremental auto financing through the Credit Union Member Discount from GM.

During 2011, nearly 9 percent of all new GM vehicles sold were financed through credit unions. This represents more than 220,000 vehicles—more than twice the number of vehicles sold through the Invest in America program—validating GM’s commitment to credit unions.

But GM isn’t merely doing a favor to the movement, as the practice also just constitutes good business, considering that credit union average rates run 150 basis points less than competing banks.

Some other actions that GM has taken through the IIA program to drive auto loans to credit unions:

  • GM has a credit union loan link in two places on its microsite to drive members back to their credit union to secure financing.
  • GM provides credit unions with member authorization requests weekly, including member contact information, to enable credit unions to follow up with members at the bottom of the purchase funnel to secure financing.
  • The Credit Union Member Discount from GM is no longer compatible with subvented rates. Rates such as 0 percent, 1.9 percent and 2.9 percent that have been bought down and offered through captive finance sources may not be used in conjunction with the Credit Union Member Discount from GM. In turn, members will be encouraged to use low-rate credit union financing in conjunction with cash incentives, resulting in very competitive monthly payments.

For example, say a member wants to purchase a 2012 Chevrolet Silverado 1500 LT Extended Cab 2WD. The Extended Cab Silverado has $2,000 total cash allowance in lieu of the lowest subvented rate, which is 3.9 percent for 60 months for qualified customers. Consider the following examples with a down payment of $2,000:

3.9% for 60 Months Subvented Financing*:

2.49% for 60 Months Credit Union Financing**:

MSRP: $31,400

MSRP: $31,400

Down Payment: $2,000

Down Payment: $2,000

Consumer Cash: $0

Consumer Cash: $2,000

Invest in America Discount $0

Invest in America Discount $1,659

Loan Amount: $29,400

Loan Amount: $25,741

Monthly Payment: $540

Monthly Payment: $457

Total Savings From Financing at Your Credit Union: $4,980

*Chevrolet Silverado lowest subvented rate as of Jan. 5, 2012
** Published rate from a credit union website as of Jan. 5, 2012

Enhanced Program

The Invest in America Credit Union Member Discount program from GM has been enhanced to drive more loans to credit unions. IIA and GM have increased the program benefits in multiple ways:

Premium Program Benefits:

  • Employee pricing for credit union employees who a non-GM make vehicle
  • Custom inserts/take ones
  • Custom web banners
  • Access to GM special offers
  • Occasional GM email marketing services
  • Plus all standard program benefits

Standard Program Benefits

  • Preferred Pricing Discount
  • Not compatible with GM subvented rate financing
  • General web banners
  • General inserts/take ones
  • General lobby posters
  • E-statement creative
  • Newsletter articles and email messages copy
  • Email services from CU Solutions Group
  • Website and social media content
  • Loan links on GM microsite
  • Weekly emails of in-market members

Credit unions can choose from two levels of participation—Premium or Standard—based on how much marketing they can commit to, allowing all credit unions to participate and continue to offer this valuable discount and benefit of membership to their members.

Annual Marketing Requirements January – December

Premium

Standard

Member Communications
Complete any combination of two member communications items listed; one within first 6 months of enrollment and both annually thereafter:

  • Include in quarterly statement inserts/E-statements
  • A direct mail/loan promotion piece
  • Conduct GM email marketing campaign

Member Communications

Complete one of the member communications items listed within first 6 months of enrollment and annually thereafter:

  • Include in quarterly statement inserts/E-statements
  • A direct mail/loan promotion piece
  • Conduct GM email marketing campaign

Newsletter/Website Promotion
 Complete all:

  • Promote one newsletter/website article in first 6 months of enrollment
  •  and annually thereafter
  • Place GM web banner or link on website home page and loan page within 30 days of enrollment and ongoing thereafter (Additional suggested locations: rates page, discount page, insurance page, etc.)

Newsletter/Website Promotion:
Complete all:

  • Promote one newsletter/website article in first 6 months of enrollment and annually thereafter
  • Place GM web banner or link on website home page and loan page within 30 days of enrollment and ongoing thereafter (Additional suggested locations: rates page, discount page, insurance page, etc.)

Lobby Promotion
 Complete all:

  • Utilize lobby materials within 60 days of enrollment and ongoing thereafter – take ones, posters

Lobby Promotion
Complete all:

  • Utilize lobby materials within 60 days of enrollment and ongoing thereafter – take ones, posters

Employee/SEG Communication
Complete all:

  • Include in human resources new hire and employer group packets within 60 days of enrollment and ongoing thereafter

 

Take Advantage

To enroll in the Credit Union Member Discount from GM and to take advantage of all it has to offer, please visit the Invest in America Partner Center and click on Credit Union Sign Up Forms. While visiting the Partner Center, program information is also available by clicking on GM Program Overview.

And credit unions should be sure to remind members that they can realize big savings with the Credit Union Member Discount from GM and its low, fixed pricing, combined with the credit union’s low loan rates, resulting in lower monthly payments.
Any questions about the revised Invest in America Credit Union Member Discount from GM should be directed to investinamerica@cusolutionsgroup.com.

Credit union enrollment is required by June 15, 2012.

Strategic Link is the NWCUAs wholly-owned service corporation, providing the Associations member credit unions with exclusive high-quality, competitively-priced products and discounted services. Questions? Contact Sales & Marketing Associate Craig Reed: 206.340.4789, creed@nwcua.org.

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