MAPS™ Member Auto Payment Saver ‒ Better Than A Lease
This innovative Choice One FCU program makes it easy to buy a new vehicle every two or three years, plus it allows you to upgrade to a vehicle you thought you couldn’t afford at a lower monthly payment. You can also use the program to finance a used vehicle.
MAPS™* financing is not a lease. It is a low-payment PA auto loan (balloon loan) with a full walk-away option at loan maturity when the final balloon payment comes due. With this financing, you own the vehicle and it is titled in your name. With a lease, the leasing company owns the vehicle and you sign a lease (rental) agreement with monthly lease (rental) payments on the vehicle.
Although the program is similar to a leasing, there are important differences. Unlike a lease, you have full ownership of the vehicle plus there’s no security deposit, no “wear and tear” penalties, and no capitalization fees.
How Does The Program Work?
When you finance your vehicle at Choice One, we determine what your vehicle will be worth the year your loan is scheduled to end. It’s called the “residual value.” The residual value is subtracted from your loan amount and your monthly payment is based on the remaining amount.
For example, if your loan is for $20,000 and the residual value is $8,000 the year your financing ends, your monthly payment is calculated based on $12,000 ($20,000 – $8,000 = $12,000) instead of the full loan amount of $20,000. Your monthly payments could be lower by nearly 50%.
What Happens At The End Of Your Loan?
When your car loan is paid in full, you have four vehicle resolution options:
- Sell the vehicle, pay the residual value, and keep the difference.
- Trade in the vehicle and pay the residual value as part of the transaction.
- Refinance the residual value as a used vehicle loan.
- Arrange to return the vehicle without paying the residual value.
If you are planning to lease a new or used vehicle and want to take advantage of the MAPS™* better than a lease program, you can call, stop by the credit union, or apply online. It’s a great way to get more vehicle for your money and a lower monthly payment.
*MAPS™ is a registered trade name of Membership Marketing Support Services.