Some Thoughts on Buying a Kia Soul Yesterday

[Hassin Bin Sober]

99. Maybe maybe not.

When I was in the F&I business we could usually match or beat the credit unions. We would do it to make the flat $100 dollar "mini" commission and the bank was happy to get the "good paper." Also, it was a convenience factor for both us AND the customer. No trips back and forth or dropping off checks. Sending "good paper" to the banks helped our ratio when we needed a favor on a marginal deal.

Also, back in the day, in finance school I was taught to overcome the "credit union" objection by pointing out borrowing money where you save money has certain risks if the loan goes bad. "Right of set off" is the risk. Never thought much about it. Never used that 'sales pitch' because I really didn't understand it.

Now fast forward to this f-cked up economy and I see the value in not having those eggs in the same basket.

A credit union is more likely to exercise their right of set-off than a large institution. Though I have been seeing the bigger banks are being more aggressive in that regard.

I've read too many stories of credit unions snatching savings/checking accounts on delinquent loans. Credit unions feel more "pain" when a loan goes bad. They can be quicker to repo a car. Also, "knowing" your customers can be bad for the customer in the event of trouble and they are looking to mitigate their losses with your cash you had set aside for the mortgage payment.