Archive for the ‘About PFCU’ Category

Fuel Efficient Cars Pay For Themselves … And Then Some!

 

There are now many fuel-efficient cars on the market to save you money.

Even though gas has dropped below $4 per gallon, if you have a long commute to work, run errands on the weekend and/or take trips out of town, fuel takes a big chunk out of your monthly budget. If you drive an SUV, large pickup truck or an old gas guzzling sedan, the hit to your wallet is even greater.

Wouldn’t it be nice if you could reduce your fuel bill AND drive a new car? You can! In fact, a brand new fuel efficient car could pay for itself in the first month … and then some!

According to the gas mileage savings calculator on auto website edmunds.com, if you trade in a 2007 Chevrolet Suburban, Cadillac Escalade or Dodge Ram 2500 Quad Cab for a 2011 Toyota Yaris sedan, Chevrolet Aveo sedan, or even a Volkswagen Jetta, you would save from $271 to $372 per month on gas: easily covering a monthly loan payment after your trade-in, and then some*.  In some cases, the value on your SUV may actually be worth more than your new car!

Let’s look at some specific numbers.

Say you own a 2007 Chevy Suburban LT 2500, and trade it in for a 2011 Volkswagen Jetta four-door sedan.  The Suburban is still worth $17,265, and the new Jetta with typical options sells for only $15,450.  Now, let’s assume you financed the Suburban over six years and still owe $15,000.  If you sell it for $15,000 and pay off your loan, you’d have to finance the entire Jetta.

A deal breaker?  Nope!  You’d still come out ahead.  Way ahead.

Let’s assume you have average credit and don’t qualify for the lowest available rate; we’ll assume you have an interest rate of 6.99% APR. Your Suburban monthly payment was $681.77, and the SUV only gets 14 miles to the gallon.  Your new Jetta, financed over five years, would have a monthly payment of $305.86; and, gets 29 miles to the gallon.

So, you’d save $271 per month on gas alone … PLUS, another $375.91 on your monthly car loan payment … AND, you’d be driving a brand new car!

That’s almost $650 added to your monthly budget, a better choice for the environment, and a brand new car that’s covered by a dealer’s warranty!  You’d save even more if you purchased a smaller vehicle that has even better gas mileage than the Jetta.

How much is your used vehicle worth?  Edmunds.com is a good resource, but you might also want to try Clearbook.com, a popular new website that uses used car listings to determine the current market value of your vehicle. Simply enter your zip code, make, model, options, mileage and condition to receive a low, average and high price.

Loan rates still at historic lows, making the cost of financing a new vehicle very affordable. At PFCU, our loan rates for new and used cars are currently as low as 2.99% APR for terms up to 5 years.  You can apply online or print an application to complete and return to us by mail, fax, or in a branch.

*Gas savings based on 2,000 miles per month at $3.80/gallon gas.  Loan payments assume an interest rate of 6.99% APR.

Welcome to the PFCU and YOU blog!

75 Years of Service

Welcome to PFCU and You, Pasadena Federal Credit Union’s new blog, designed to connect you with a wide range of resources and information about PFCU’s commitment to your financial future, to building our community and to financial literacy.

PFCU and You will enable us to keep you informed of new services, alert you to fraudulent activities in the community that could impact you, and tap into the expertise of our staff and some of our affiliates to make you a more informed consumer who is better able to meet the challenges of the complex world of personal finance.  We hope you will check in with us often to be proactive about managing your money.  By doing so, you will gain peace of mind and confidence in your ability to make sound choices.

It’s no accident that PFCU is in the midst of a year-long 75th Anniversary celebration.  PFCU has been standing strong as a safe and secure place to save and borrow since 1935 due to our relationship with members like you.  This blog is a way of strengthening that relationship and strengthening you, our member, as well.  When you stand strong, so do we.

At Pasadena Federal credit Union we don’t think of you as our “customer”.  PFCU is you!  We are made up of the member-owners who founded and sustain us.  The more you become an active participant in your financial future, the better the results.  PFCU is here to help.  Enjoy PFCU and You and check back often!