Frequently Asked Questions
see answers to frequently asked questions
What is a Club?
A Club is a de facto corporation formed by Club members who are brought together by Savings Club for the purpose of financing vehicles through group savings, with a set of established terms. The Club will be terminated when the term is completed and all goals are fully met.
What is a Credit Voucher?
The credit voucher is the authorization that a Club member receives to purchase their vehicle. This voucher offers the credit needed to purchase a vehicle up to the Club value.
Can I participate in more than one club at a time?
Yes. However, each account can only be associated with one Club at a time. If you would like to participate in additional Clubs at the same time, you will need to make different accounts for each Club using different email addresses.
The vehicle price went up since I joined the club. What should I do?
Whenever there are significant changes to vehicle prices on the market, the administrator will suggest to Club members that an increase in the Club value might be needed. Club members will then get to vote on whether to raise the Club value to match the current market, or whether to continue with the original value. The majority will decide the direction of the Club and, if an adjustment is in order, all fees and balances will be adjusted accordingly so that members have their purchase power matched with the current market conditions.
Can I get the cash instead of the Credit Voucher?
You can get cash instead of a Credit Voucher if you are the last Club member. Otherwise, all Club members need to purchase a vehicle in order to use the credit. This is done in order to secure the loan and protect all Club members against default.
Can I sell or transfer my membership?
If you have not yet received your credit voucher, or if you have an unused voucher available:
- Yes, you can sell or transfer your membership. Your buyer, or membership recipient, will need to reach out to our customer service department to inform us they are buying or receiving a Club membership from an existing member. We will then provide your buyer, or recipient, with information on the steps to follow, which includes:
- Creating an account with us and providing all of their personal information.
- Getting their membership approved.
- Signing a Club membership contract and agreeing to honor the remaining payments in your membership.
You will then have to confirm the transfer before it takes effect.
If you have already received a credit voucher and used it to purchase a vehicle:
- No, you cannot sell or transfer your membership. In order to terminate your membership, you have three options:
- Pay off the balance remaining in your account.
- Refinance the balance with traditional financing. We can help you with that.
- Sell your vehicle. The vehicle sale proceedings will be used to pay off the balance, and the remaining balance will be sent back to you.
Will you place a lien on the vehicle?
Yes, a lien will be placed on the vehicle until all of your payments are made, according to the Club’s terms. The credit you use to purchase your vehicle comes from the Club, and the lien is the protection the club has against default to try to recover the loss and avoid impacting other Club members.
Why are you asking for my Social Security number?
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.
However, allowing us to conduct a credit check can be beneficial to you because, if the results are favorable, you may get a higher Savings Score and a better rate because this information reduces your risk relative to other Club members.
What happens if I stop paying or pay late more than three times?
Due to the effect that late payments have on the Club and its other members, Savings Club has a very strict late payment policy. If a member makes 3 late payments (consecutive or not), or stops paying altogether, the member will be removed from the Club. When a member is removed from the Club, the full Administration Fee becomes due immediately. If the member has not made enough payments to the Club to cover the full Administration Fee, then the remaining amount will be reported to collections. If the member has made enough payments to the Club to cover the Administration Fee, the fee will be deducted from the amount and any additional credit will be returned to the member only at the end of the Club’s set term (typically seven years from the start date).
If you are unable to continue paying or would like to leave a Club, please call us to see what options are available to you.
What happens if I pay late?
Late payments are subject to a late fee. If the late payment is also followed by a returned check, then a returned check fee will also be assessed.
I changed my mind. How can I cancel my membership?
Club memberships cannot be canceled so that we can guarantee that the Club can continue as planned and no other members are impacted. However, the good news is that Club memberships can be transferred to someone else if you have not already used a credit voucher. When you transfer your membership to another person, you will be able to set the price of the transfer (either higher or lower than what you have already paid).
How can I get a Credit Voucher sooner?
If you would like to minimize the time you have to wait to receive your Credit Voucher, there are several things you can do. These are a few tips:
- Invite friends to join one of our Clubs with your referral code. For each new member that joins one of our Clubs using your referral code, you will receive credit equal to an additional payment towards your Club balance. Anyone joining a Club using your referral code will also receive a lower promotional fee and a credit to get them ahead of the pack. If you invite enough friends, you could receive enough credits to pay for your vehicle!
- Increase your monthly payment amount. This will reduce your risk relative to other members of the club and increase your Savings Score. Increasing your monthly payment will allow you to finish paying your full amount sooner, receive your credit voucher more quickly, and possibly reduce the monthly dues proportionally once you get your vehicle.
- Make additional payments whenever possible. Additional payments count towards your balance and increase your Savings Score because it reduces your risk relative to other members of the Club. Once you get the vehicle, you’ll be able to finish paying sooner or reduce your monthly dues proportionally.
Where can I use my Credit Voucher?
You can use your Credit Voucher at any dealership, or for any private sale, in the state of Texas. However, if it is a private sale and there is a current lien on the vehicle, the seller must contact their lien holder to confirm that the lien can be written off and transferred to Savings Club once you pay the balance in full using your Credit Voucher.
How can I use my Credit Voucher?
Using your Credit Voucher is easy! You can shop at any dealership and proceed with purchasing the vehicle as usual. After negotiating the price, bring up the instructions and the Credit Voucher sent to your email. The dealer will complete the transaction with us so that you can drive out of the lot on the same day.
Can I make extra payments with my credit card?
No. The only form of payment accepted for Savings Club is ACH.
Why would I make an additional payment?
There are two benefits to making additional payments:
- Extra payments increase your Savings Score. When you make an extra payment, you reduce your risk relative to other members of the Club, which increases your Savings Score and helps you get your Credit Voucher sooner.
- Additional contributions raise the balance available in the Common Fund, which increases the Club’s ability to issue more credit vouchers.
When is a Credit Voucher given?
Each month, the Club goes through an assessment that determines whether the Common Fund has a large enough balance to issue a Credit Voucher (there must be a balance of at least 2x the Club value), how many vouchers can be issued, and which members are going to receive a voucher that month.
The frequency with which credit vouchers are issued is determined by the number of members in the Club. Clubs with more members have the funds to issue credit vouchers more often than Clubs with fewer members. That is why it is essential to spread the word and invite friends and family to join the Club.
How are Club members selected to receive a Credit Voucher?
The order in which Club members receive their credit voucher is dictated by their Savings Score. The Savings Score is an evaluation of the risk each member represents to the rest of the Club. Participants with higher Savings Scores (lower risk) will receive their Credit Vouchers sooner in order to reduce the risk to all other members of the Club.
Can I purchase a vehicle with a value that is higher than the Club value?
Yes, that is possible. However, you will be responsible for paying the difference between the Credit Voucher value and the full cost of the car, either out of pocket or by securing other financing to cover the additional costs.
Can I purchase a vehicle with a value that is lower than the Club value?
Yes. The difference between the car value and the Club value is credited towards your contributions to the group, and you’ll be able to either finish your payments early or reduce your monthly payments proportionally.
Which Goods Can be Purchased Through the Club?
Currently, it is only possible to purchase vehicles through the Club. This includes cars, motorcycles, and trucks.
What is the Administration Fee?
The Administration Fee is paid directly to Savings Club and covers the administrative costs for the formation, organization, and administration of the Club. The fee is stated up front in the participation agreement.
Can I Use a Credit Voucher To Pay Off A Current Auto Loan?
Yes, that is possible. In order to use a credit voucher to pay off a current auto loan with another financial institution, the credit voucher must cover the full amount of the remaining balance on that auto loan.
Please note that some financial institutions are not willing to write off the lien before receiving the full amount, so you must speak with them first to ensure the lien can be written off once you pay the balance in full using your credit voucher. The lien on the vehicle will then need to be transferred to the Club that you are participating in and Savings Club will hold the title and the lien until your balance in the Club is fully paid.