FlexLoans
How would you like the low monthly payments of a lease, without all the heavy restrictions and hidden costs? Pittsford FCU’s FlexLoan offers vehicle financing with payments up to 30% lower than conventional options. With a FlexLoan, you are only making payments for the portion of the car that you intend to use. During the life of the loan, you can sell your vehicle, trade it in, refinance, or pay it off at any time without fees. Or at the end of the loan, you may simply walk away from the final payment by turning the vehicle over to our partner AFG.
How the FlexLoan Program Works
Eligible Vehicles
Most future year, current year, and used vehicles up to five years old. Maximum mileage restrictions do apply.
Financing Terms
24 to 72 Months
Rates
Enjoy the same rates as our conventional auto loan
Program Fee
A one-time, non-refundable fee of $825 can be rolled into the loan balance or paid separately at origination.
Residual Value
Established based on the term of the loan using industry approved guidelines similar to leasing.
Payments
The difference between what you pay for the vehicle and the residual value is used to determine the principal portion of your payment, which results in a lower monthly payment than conventional financing.
Flexibility
At any time during your loan term, you may:
- Sell the vehicle, pay the loan balance (including residual value) and keep any difference
- Use the vehicle as a trade-in, and the loan balance (including residual value) is paid as part of the transaction
- Keep the vehicle and refinance the loan balance (including residual value) as a used vehicle loan
At loan Maturity:
- Return the vehicle and “walk away”. There will be a disposition fee of $195, and over-mileage fees of 10 cents per mile and excess wear and tear (if any).
- Any of the other flexible options listed above
Residual Value and Guaranteed Future Value (GFV): The residual is the projected value of the vehicle at loan maturity. Our program guarantees this residual we call it the “Guaranteed Future Value.” If your vehicle is worth less than what you owe on your loan at maturity, you can turn the vehicle in and “walk away.”
FlexLoan Program Advantages
No Down Payment Required
Most leases require a down payment, often referred to as a “Cap Cost Reduction”—FlexLoan does not.
More Flexible Options
Select one of the following annual mileage allowances: 7,500, 10,000, 12,000, 15,000, or 18,000. Any excess mileage will incur a charge of $0.10 per mile.
Financing terms available from 24-72 Months
Program is available on new or used vehicles
You Own the Vehicle
Unlike leasing where the vehicle is titled in the name of the leasing company, with FlexLoan the vehicle is titled in your name. This offers you greater flexibility both during the loan and at loan maturity.
The Option to Keep the Vehicle is Easy
With traditional leasing, if you decide to keep your vehicle, you have to buy it out. Which means you’ll pay tax, title and license on the vehicle you’ve been driving. With FlexLoan, you simply refinance your balance into a conventional loan, no additional charges. It’s already titled in your name.
Option to Return the Vehicle
If you choose to walk away at maturity and utilize the vehicle buy-back option, there will be a disposition fee of $195, over-mileage fees of 10 cents per mile and excess wear and tear (if any). The company (our partner) that hosts the program makes it a seamless process. You can do a self-inspection with an app to assess the turn in fees.
If you move during the term of a FlexLoan and elect to return the vehicle, your vehicle can be picked up from a mutually agreed upon location, anywhere in the US.
FlexLoan Program Disclosures
Potential “Gap” in Value
It’s important to note that Pittsford FCU does not sell “Gap Insurance” (which protects borrowers, should they experience a “total loss” accident, and the insurance company’s estimate of value at the time of the incident is less than the amount owed). We strongly encourage all program participants to investigate the value of Gap Insurance (purchased elsewhere) for your particular situation.
Additionally, a FlexLoan has a higher risk of becoming “upside down” – where the amount owed at some point(s) during the loan term is greater than the value of the vehicle securing the loan. The value at the end of the loan term is guaranteed (allowing participants to simply walk away, if they choose), however, the vehicle value throughout the rest of the term of the loan is not guaranteed, which may become a factor should you wish to sell or trade the vehicle at any point during the term of the loan.
Eligibility
Membership is subject to eligibility. All loan approvals are subject to underwriting terms and conditions.