Can anyone join savings.club?

We ask for your Social Security Number as a part of an authorization request to conduct a credit check. This is optional and you can still fully participate in a club without a credit check or providing a Social Security Number.

What is an EAPR and what’s the difference between traditional loan APR?

With traditional loans, APR is an annual rate calculated based on fees you pay to secure the loan. Here at savings.club we use EAPR (Equivalent Annual Percent Rate) where you only pay for your vehicle and administrative fees. Our administration fees are used to keep up savings.club's infrastructure and EAPR means no compounding interest, ever.

Why is savings.club so much cheaper than traditional financing?

With savings.club, you only pay what you need to. All of the hidden fees and costs you pay with traditional loans aren’t a factor in our pricing. You’ll only ever pay for your car and administration fees so that we can properly run your club.

When will I get my car?

You can pick out a car from any dealership once you’ve received a credit voucher. Your eligibility for a voucher is dependent on your savings score. You can increase your score the more you make on time payments. The higher it is, the sooner you can receive your voucher and buy a car. The voucher works just like cash, so you can drive off the lot with your car once you decide which one is best for you.

Financing a Car for Less: Exploring the Savings

Written by Ashton Dobbins

2 min read • Published February 28, 23

Buying a car is a significant investment; financing is the only way to afford it for many Americans. U.S. citizens haven’t been able to pay off their vehicles quickly for a while. When securing a loan for a car, most people turn to traditional lenders like banks, credit unions or even dealerships. However, there is another option that can save you tons of money in the long run: savings clubs.

What is a savings club?

A savings club is a group of people who pool their money together to save cash and secure loans at lower interest rates. The concept is simple: each member contributes a certain amount of money each month, used to lend to members who need it. Learn more about savings clubs in our other blog post.

How much can you save financing a car through a savings club?

The amount you can save by financing a car through a savings club versus a traditional lender will depend on several factors, including the interest rate and loan term. Let’s take a look at an example:

Suppose you want to buy a car for $30,000. You have good credit and qualify for a 3-year loan from a bank at an interest rate of 8%. Your monthly payment would be $933, and you would pay a total of $33,598 over the life of the loan.

Now let’s say you join a savings club that offers car loans at a 2% interest rate. You apply for a 3-year loan for $30,000. Your monthly payment would be $869, and you would pay a total of $31,284 over the life of the loan.

In this case, you would save $2,314 by financing your car through a savings club instead of a bank loan. You could use this significant amount of money to pay off debt, build an emergency fund, or invest in other financial goals.

These are just examples, and savings.club can save you even more depending on the value of the desired vehicle and loan term. We even allow you to use credit history to improve plan options.

In a nutshell…

After it’s all said and done, financing a car through savings.club can be a wise financial decision if you want to save money on interest and pay off your loan faster. While the interest rate and loan term will depend on a few factors, it’s worth checking out some deals just for you! With savings.club, there’s finally smart funding for smart people. Since savings.club never charges more than 9.9% EAPR, we guarantee the best rates in the market.

Read full Bio

Ashton Dobbins

Copywriting

As savings.club’s copywriter, Ash takes on various B2B and B2C communication tasks. He went to school for illustration at SCAD. There, he developed a passion for writing and effective storytelling. Ash is fond of journalism and reporting on the facts. He’s interested in new and groundbreaking ideas, especially ones that challenge the norm. Ash still loves to create art outside of work. His cartoons and writing have even been featured in The New Yorker!

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