Midwest Credit Unions Offer Low-Interest Car Loans, GM Discounts

Today, GM announced a deal with a consortium of 1,200 credit unions in Illinois, Indiana, Michigan and Ohio that will make $10 billion in low-interest car loans available to car shoppers. Credit union members will not only get access to the loans, they’ll also get GM’s supplier discount on top of other current incentives.

The program is set to run today through June 5, 2009. If you purchase a car before Jan. 5, 2009, however, there will be another $250 in cash back. 

This deal is only eligible to members of the credit unions, but anyone who opens an account with a credit union will be qualified as well. 

The credit union group’s website has links for future plans with Ford and Chrysler as well, but there have been no announcements made by either of those companies.

To check to see if your credit union is part of the consortium, go here. 

GM Offers Extra Savings for Credit Union Members (Invest in America)

Comments

What took GM so long to act? Just more proof that GM is the worst run car company.

Tabor,
Yes, I'm sure getting 1200 credit unions together takes just a few hours ;)

Seriously though, I think a lot of people were thinking the bailout money would go to loosen credit and it hasn't happened yet. So they needed to find willing lenders. Another problem these days.

The real issue is consumer confidence, not available credit. And that can't be fixed with incentives.

^^^^
Then why are sales down across the board.

Broq

"The credit union group’s website has links for future plans with Ford and Chrysler as well..."

will credit union fix my broken Chrysler?

why would I buy a car made in Mexico like many Fords and Chryslers? I would rather get a Toyota or Honda from US assembly.

Last time I checked, I could be wrong as I don't care that much, ford only had one model made in mexico, the Fusion/Milan/Mkz- and it is still one of the most reliable cars on the road.

Broq

Broq,
I believe you are correct.

Ford, GM, and Chrysler could make all of their cars in the USA and they would still suck. Only the Detroit 3 are begging for bail-out money because they build unreliable, low quality cars that No One wants to buy. The other day GM put out a press release whining that Fleet sales are down 64%!! I can't wait to see GM file for bankruptcy as they are a disgrace. Thank God Toyota and Honda are building high quality cars in the USA that Americans can be proud of.

Pete,
I think you are quoting Chrysler's fleet sales. And they used that number as a positive because fleet sales can damage brand equity and don't bring in as much profit.

I see history beginning to repeat itself with this move....

Ok... let's backtrack. The home market tanked because people are having trouble paying loans because loans were made to people who couldn't afford to pay them back. Banks knew this but, continued to loan until poof!

Why are we now trying to do this with the automotive industry? Especially in a weaker economy?

Credit Unions are banks and have standards. They are not looking to just pump of sales. The Credit Unions might have extra cash lookin for a home compared to the mismanaged national banks. I have not heard of a Credit Union yet going bankrupt but I am sure it happens. The credit unions are regional and don't have the same greed index national banks due. But thats just my opininon. I have banked at credit unions forever and some are really good.

credit unions are not banks. i have worked at one for 3 years and at a real bank previously for 3 years as well. a credit union is a not for profit business. they do not put points on top of loans or skim off the top to pay its investors, because there are no investors. credit unions cannot be publicy held, so the money the credit union makes goes back into the business to offer lower rates and more services. good move by chrysler and gm.