Credit Union Gives U.S. Cars Best Rates
Jumping on the bandwagon to support troubled U.S. auto makers, the Orange County Federal Credit Union has launched a “Jump Start America” campaign that offers its 40,000 members lower interest rates if they purchase “domestic” automobiles.
The credit union, the second largest in Orange County, will offer variable-rate financing as low as 5.9% on domestic car loans through April 28, while its lowest rate for imports is 7.74%. It considers any vehicle manufactured by Ford Motor Co., General Motors Corp. or Chrysler Corp. as “American made.”
“We felt this was an excellent opportunity to offer our members a tremendous rate and promote a very worthwhile cause as well,” said William Combs Jr., senior vice president. “We hope other financial institutions will do the same.”
The Jump Start America campaign was started in Warren, Ohio, by William Lippy to help U.S. auto makers. The campaign doesn’t sit well with Mazda Motor of America Inc., the Irvine distributor of Mazda cars in the United States.
“I hope it does do some good for the American economy,” said Mazda spokesman Jack Pitney. “We at Mazda are interested in being good American corporate citizens too.”
Pitney noted that Mazda’s Navajo utility vehicle is made by Ford in Louisville, Ky., and its 626 four-door sedan and MX-6 luxury sports coupe are manufactured in Flat Rock, Mich.
The models, which contain more than 75% U.S.-made parts, are the first cars sold by a Japanese company that have been classified as “domestic.”
“Many cars made by GM, Ford and Chrysler do not meet the same strict criteria for domestic classification,” Pitney said.
Alan Gallardo, marketing representative for the credit union, said that if any members wanted to purchase the Mazda models, then they would be given the lower rate. But he said that Mazda vehicles would not be listed as “American made” in promotional literature.
The Orange County Teachers Federal Credit Union, the county’s largest credit union, has no differential for foreign or domestic car loans, which range in interest from 6.75% to 10%, said Michelle Bloedorn, vice president of marketing.
