Illinois Credit Union System — Indepth

 Fourth Quarter 2008


IL CUs "Invest in America"




ICUL, leagues in 11 other states, and the Credit Union National Association have partnered to offer the Invest in America program to credit unions in their respective states.

The program kicked off December 8, 2008 with an exclusive Supplier Discount Program on most General Motors vehicles (Buick, Cadillac, Hummer, Saab, Chevrolet, GM, Saturn and Pontiac), and will provide a double value to members who use credit unions’ best-in-class loan rates for financing while also taking advantage of the Credit Union Discount from GM. As of December 16, 2008, an agreement was signed with Chrysler adding them to the existing Invest in America Program. The Chrysler pilot region includes the initial four states (MI, OH, IA and IL) plus eight other states OK, TX, KY, AR, TN, LA, NM, and MS.

At a time when economic stress is sweeping the nation and threatening the survival of the U.S. auto industry, this partnership will provide affordable financing and exclusive discounts for 12 million credit union members as well as anyone who becomes a member of a participating credit union in the participating states.

These are great opportunities for your members and also for your credit union including: increased auto loan volume, added value for existing members, a catalyst for membership growth and positive public relations opportunities.

“Credit unions are seeing a surge in auto loan volumes nationwide as other lenders have been impacted by the credit crisis,” said Dan Plauda, ICUL president/chief executive officer. “’Invest in America’ just formalizes something credit unions have been doing since the Depression – lending money at low rates to working class families.”

Program details including: a description of the program, the Web banners to access the discount, an FAQ, the opt-out option and the marketing materials are available to all credit unions at http://www.lovemycreditunion.org. To access the resources, click on the Credit Union Resource Center on the left navigation.

How it Works

GM Program Overview
The GM program will provide a double value to members who use credit unions’ best-in-class loan rates for financing while also taking advantage of the Credit Union Discount from GM.

All current and new credit union members will receive the GM Supplier Discount pricing (an additional $250 discount was also offered during the month of December) off of new vehicles. The kick-off of the Credit Union Discount from GM began Monday, December 8, 2008. You’ll want to be part of this exciting member program, so that your members have access to the discount. However, if you do not want your credit union to be part of the program, there is an opt-out option.

Also with regards to GM, we have received news of an additional member GM Cash Back Bonus for credit union members on certain GM brands and models. GM created two fliers (click here for the bonus cash flyer; click here for the pricing flyer) with the details that include extra cash back of up to $3,200. Please note that this offer is valid only through the first week of January; the actual end date varies by model. The revised GM X-lerate campaign for 2009 has been uploaded to the http://www.lovemycreditunion.org Web site. Credit unions can download these materials and have them printed or if they wish they can e-mail CSR@CUcorp.com to have CUcorp print any materials.

Overview

December 8, 2008 – January 5, 2009

  • Exclusive Member Discount includes supplier pricing (approximately 4.5% off MSRP) and additional member GM Cash Back Bonus, plus $250 off new vehicles (during December only);

January 6, 2009– June 30, 2009

  • Exclusive Member Discount includes supplier pricing (approximately 4.5% off MSRP)

Keep in mind that these discounts are “layered” on top of other incentives on specific brands as well as dealer incentives, making this a truly good deal for CU members. With that said, we also understand that consumers may be able to negotiate a better deal in some cases, irrespective of the CU discount.

  • Credit unions promote the program to their members using the approved marketing materials available to download from the Credit Union Resource Center on http://www.lovemycreditunion.org.
  • If possible, provide your members with a pre-approved auto loan before they visit the dealer (credit union financing is not required to receive the discount).
  • Direct members to your web site to click on the web banner that will take them to http://www.lovemycreditunion.org.
  • This site will provide directions on how to access the discount and provide a web button that will take them to the GM Credit Union Discount site.
  • At the discount site, members select their credit union from a drop down menu, print out the Personal Authorization Number and head to the dealer.
  • Credit union members will have to provide proof of membership to the dealer, such as a statement, check or membership card. Credit union members should always be urged not to share any confidential information as proof of membership. For instance, the top of a statement with name, but without account information, or a check copy would suffice.

Chrysler Program Overview
An agreement has been signed with Chrysler to provide Illinois credit union members with a $500 or $1000 cash incentive on most new Chrysler cars and truck purchases. The Chrysler Cash Incentive program is exclusively for credit union members. Here’s the best part - the discount only applies if they finance through a credit union! The Chrysler Credit Union Member Cash Program provides cash incentives exclusively to credit union members. These incentives will be layered on top of most other promotions or incentives. This can be a fantastic marketing opportunity for your credit union.

In addition, Chrysler Cruise into Cash Back campaign materials are also available via the Love my Credit Union Web site. As with the GM materials, this includes statement stuffers, posters, web banners, newsletter articles, on hold messages and other materials. Generic Invest In America materials that credit unions can use to market both the GM and Chrysler programs are also available.

Please note: a credit union finder is also on the Love my Credit Union Web site for those consumers who want to join a credit union to take advantage of these programs. That finder is called http://www.findacreditunion.com and your credit union is strongly encouraged to check and update its information on this site as needed. If your credit union does not show up in the finder, or for information about how to access the site, please contact Member Services at 630-983-3211.

Lastly, Invest in America provides an excellent PR opportunity for credit unions. Please feel free to take the press release issued by the League and re-format it for usage in your local market. If you need PR assistance, please contact William Wille, ICUL PR Coordinator at (630) 983-3216.

Thank you for participating in this program. It has huge potential for credit unions and their members. We look forward to working out the kinks with your help. The Invest in America program will be piloted in this 11-state region with plans to go nationwide as soon as April 1, 2009.

© 2008 Illinois Credit Union League. All rights reserved.