MIRAMAR, Fla. (11/29/12)--Tropical Financial CU in Miramar, Fla., is offering low rates for auto financing that have been a boon to the $574 million asset credit union's business.
This week, Tropical Financial is offering loans with as low as 1.49% interest on new or used vehicles, and refinancing rates as low as 2.5% (The Star-Ledger Nov. 25).
In the past year, the credit union has seen a 46% rise in consumer loans, propelled by the increase in auto loans, Helen McGiffin, Tropical Financial chief operating officer, told the newspaper, adding that is a "pretty hefty increase."
Because automakers are subsidizing low interest loans at dealerships, with some charging no interest, lenders realize they must offer inexpensive loans to stay competitive, McGiffin told the paper.
Consumers currently are accustomed to 0% loans, she added.