Lower My Payment Option
Lower My Payment Option is formerly known as the R.E.D Program
The smart choice in new and pre-owned vehicle financing! How would you like a low payment vehicle loan program that combines the best features of conventional financing along with the benefits of leasing? Sound too good to be true? Well, HTFFFCU has the vehicle financing answer for you!
Gives you the best of both worlds. Like a lease, offers payments considerably lower than conventional financing. Yet, unlike leasing, you own the vehicle and have all of the flexibility and benefits that come with vehicle ownership!
All new and up to five-year-old cars, vans, and light trucks qualify for finance. All vehicles can be financed for up to 72 months! Benefits include:
No Capitalization Fees
No Application Fee
No Security Deposit
Option to Sell, Trade, Finance Vehicle Anytime or
Return Vehicle at Loan Maturity and simply “Walk-away”
No Early Payoff Penalty
100% Financing with NO MONEY DOWN
Mileage Options of 7,500, 10,000, 12,000, 15,000 and 18,000* Per Year Available
Want to find out how the Lower My Payment Option works?
Go to the CarBuilder calculator where you can build your car from the comfort of your own home.
Would you like to know more about the Lower My Payment Option? See below to read Elizabeth Wright, HTFFFCU AVP of Lending describing how the program can work for you.
How does the Lower My Payment Option work?
People buy cars differently. Some spend months researching the best engines whereas, others buy impulsively based on which vehicle catches their eye. Some prefer brand new and shiny vehicles; some choose pre-owned ones. Many people save up for years to avoid a car loan; others don’t mind borrowing. Some people need spacious cars for their families, and others may choose vehicles solely based on their future trade value.
At HTFFFCU, we are conscious of your different needs, your life circumstances, and your individual driving habits. That’s why we have the Lower My Payment Option, a vehicle financing option that’s not a loan and not a lease but has the benefits of both. So how exactly does that work?
We sat down with Elizabeth Wright, AVP of Lending at HTFFFCU and asked her to shed some light on how we can lower your vehicle loan payment. When you decide to finance a vehicle with the Lower My Payment Option, the vehicle is titled in your name, unlike with the typical lease. But your monthly or bi-weekly payments are approximately 30% – 40% lower than if you’d taken a regular vehicle loan. Financing is available from 24-72 months with model vehicles up to five years used.
Why is that?
Because of the residual value that we subtract from the price of the vehicle at the start of the program. However, even though the regularly scheduled monthly payments are lower, it is in exchange for a larger final payment of the guaranteed future value if you decide to keep the vehicle. Let me give you an example. Let’s say you want to finance a vehicle that’s worth $30,000 and you want to finance it for 5 years. If you take a traditional loan, you pay $30,000 plus interest for a term of five years. If you use the Lower My Payment Option, we calculate first what the value of this vehicle in 5 years is going to be. Let’s say it’s going to be $12,000. So, we subtract $12,000 from $30,000 and arrive at the amount of $18,000. This is what we ask you to pay over the course of the next five years. If you decide to keep the vehicle, the residual amount that is due, in this case, $12,000 must be paid in full or financed through a conventional loan. However, if you choose to take the third option, AFG will pay the residual, the guaranteed future value listed on their addendum. The member will pay any remaining interest, late fees or turn in fees to satisfy their loan balance.
Let’s say I want to turn the vehicle in at loan maturity. Where’s the catch? What do I have to pay?
No catch. The only cost if you decide to walk away is a disposition fee of $195 and any fees that may occur for any excess wear and tear or over mileage. You essentially drove a $30,000 priced vehicle for the cost of $18,000. The vehicle must be in good condition upon return. Excess miles driven are only 10 cents per mile.
It sounds too good to be true…
There is an upfront enrollment fee of $775, and there are few restrictions on the vehicles available for financing through the Lower My Payment Option. The vehicle that you choose cannot be older than five years, and the mileage cannot be higher than 105,000 depending on the vehicle’s age. You can select mileage options from 7,500, 10,000, 12,000, 15,000, or 18,000 miles per year in the plan you choose.
What about price restrictions?
For vehicles with an MSRP greater than $75,000, a surcharge may be applicable. Our loan officers would disclose this to you upfront.
Is the Lower My Payment Option for everyone?
Who isn’t looking to get a lower monthly payment on their auto loan? Our Lower My Payment Option financing is a great way for members who trade in their vehicle often to get an affordable payment that fits into their budget, shorten their trade cycle, and eliminate their risk of being in a negative equity position. With that being said, if you plan to drive a lot more than the typical city driver, due to mileage, our Lower My Payment Option may not be for you.
Loan examples:
2024 Ford F-150 XLT Super Crew (New)
| Term in Months | A.P.R. | Lower My Payment Option | Conventional Loan Payment | Guaranteed Future Value |
| 24 | 4.75% | $1,622.00 | $2,836.00 | $32,974.00 |
| 36 | 4.75% | $1,102.00 | $1,935.00 | $34,174.00 |
| 48 | 4.75% | $946.00 | $1,485.00 | $30,337.00 |
| 60 | 5.75% | $920.00 | $1,245.00 | $24,503.00 |
| 72 | 5.75% | $818.00 | $1,066.00 | $23,186.00 |
A.P.R. = Annual Percentage Rate. Payments are based on a 700 FICO score and 100% financing of MSRP with a final loan amount of $65,587.50.If you participate in the Lower My Payment Option, the residual amount will be due at the end. Purchase prices may vary by dealership.
Selling Price: $61,000.00
Sales Tax: $3,812.50
Program Fee: $775.00
Total: $65,587.50
2019 Toyota Camry Hybrid XLE
| Term in Months | A.P.R. | Lower My Payment Option | Conventional Loan Payment | Guaranteed Future Value |
| 24 | 4.75% | $770.00 | $1,131.00 | $10,699.00 |
| 36 | 4.75% | $579.00 | $772.00 | $8,921.00 |
| 48 | 4.75% | $475.00 | $592.00 | $7,593.00 |
| 60 | 5.75% | $424.00 | $497.00 | $6,489.00 |
| 72 | 5.75% | $372.00 | $425.00 | $6,061.00 |
A.P.R. = Annual Percentage Rate. Values are based on an A Fico score (700+) and a final loan amount of $26,620.31.If you participate in the Lower My Payment Option, the residual amount will be due at the end. This example is based off a member purchase financed during February 2023, purchase prices may vary by dealership.
Selling Price: $24,325.00
Sales Tax: $4,520.21
Program Fee: $775.00
Total: $26,620.31
To receive the lowest rate within each range above requires a FICO score of 700 or higher. See a loan officer for specific details.All rates are subject to change without notice. Some restrictions apply.