Auto Save: Save while you borrow
We hear from members all the time how difficult it is to save up for the down payment on a new vehicle. With all the bills, insurance, mortgage, etc…it’s hard to put some money aside for the next time you need to buy a car. Then, when it comes time to purchase that new car, you still have to finance 100% of the purchase price.
What’s wrong with that? PLENTY.
When you finance 100% of your vehicle, you’re paying a lot more interest than if you made even a modest down payment. By borrowing less you’ll pay interest on a smaller principal, which means less interest paid overall.
Plus, with higher equity in the car thanks to the higher down payment you’ll be less likely to owe more than the car is worth if you sell or trade-in the car, or in the unfortunate instance of it being totaled due to accident or theft. You can buy GAP insurance to cover the difference, but with a larger down payment, you may not need to.
Auto-Save helps build your next down payment
At Eastern, we’re here to defend your driving with a program we’re calling Auto-Save, our new way to make it easy for you to automatically save up for your next car purchase.
We’ll set up a special share certificate in the same term as your loan…we’ll even GIVE you $50 to open the certificate. Then, you determine an amount you want to contribute to this certificate every month, and set it up via Direct Deposit and Payroll Deduction. You earn a great rate, then when it’s time to buy your next car, you have your down payment waiting for you.
How much difference can a down payment make? Let’s say on a $20,000 car, you put away just $25 per month for 72 months with Auto-Save. At our current certificate rates (click here to see them), you’d have more than $2,000 put away for your next down payment.
And how much would that save you? On a 72-month, $20,000 loan, your higher down payment would qualify you for a 0.25% discount through our Auto-Rate program (check our current rates here). So, by paying a lower rate, and paying interest on a lower balance, you’d save hundreds in interest charges compared to financing the entire loan.
Plus, by paying a higher down payment, you’ll be $2,209 closer to not needing GAP insurance or worrying about having to pay out of pocket if your car is totaled or stolen.
As with any certificate, penalties apply for early withdrawal…unless you use your Auto-Save certificate for a down payment on another car. Then we’ll waive any penalties.
With Auto-Save, you receive the same low Eastern auto loan rates as any other auto loan, but you’ll get much more than a low rate. You’ll get the confidence of knowing your next car will cost you a lot less
