FedEx Employees Credit Association auto loans review
Financing with APRs as low as 1.49% for members of this credit union.
Max. Loan Amount
Starting at 1.49%
First, do I qualify?
To be eligible for an auto loan from the FedEx Employees Credit Association (FECA) you first need to be a member. That means you need to be a FedEx employee, retiree, family member or household member. Outside of the initial requirement, you’ll also need to have the following documents:
- Your Social Security number
- Two forms of ID including one that’s government-issued, such as a passport or driver’s license
- $25 to deposit in a savings account
Having the documents and meeting the first requirements doesn’t guarantee a membership though. Credit unions and banks will generally not approve an application when you have delinquent accounts or unpaid fees with other financial institutions.
Auto loans have additional underwriting criteria that must be fulfilled. FedEx also claims that past bankruptcy or a low credit score may not prevent you from approval if you have the income to make loan repayments.
What makes FedEx Employees Credit Association auto loans unique?
Two types of specialty auto loans are available through FECA. First-time buyer and credit restoration auto loans are tailored to — as the names might suggest — first-time buyers and those who don’t have perfect credit.
Specialty loans aren’t the only unique offer though. FECA also has a rate-matching feature: If you bring in a better quote from a competitor, it’ll match the APR or lower its offered rate by 1%.
What types of auto loans does FedEx Employee Credit Association offer?
Up to 100% financing is available, with rates starting at 1.49% APR and terms up to seven years. The car you purchase, loan amount, term and your financial profile affects the offered APR.
The longer the loan term, the higher the APR. Rates can start as low as:
- Up to 36 months: 1.49%
- 37–60 months: 1.99%
- 61–72 months: 2.49%
- 73–84 months: 3.49%
FedEx offers four types of loans:
- New car loans. A 72-month loan term requires a minimum loan amount of $25,000. An 84-month loan term requires a minimum loan amount of $30,000.
- Used car loans. Vehicles over 10 years old or with more than 100,000 miles aren’t eligible for financing.
- First-time buyer auto loans. If you have limited credit or are a first-time buyer, you can sign up for this program. A checking account with direct deposit is required to qualify.
- Credit restoration auto loans. New and used car financing is available to you even if you have poor credit or a bankruptcy.
FedEx Employees Credit Association leisure auto loans
FECA offers auto loans for leisure vehicles in addition to standard auto loans. Terms are available up to 84 months, with minimum rates starting at 7.29% APR.
The longer the loan term, the higher the APR. Rates can start as low as:
- 24–60 months: 7.29%
- 61–72 months: 8.29%
- 73–84 months: 9.29%
Up to 100% is available for financing new boats, and used boats may be financed up to the National Automobile Dealers Association (NADA) trade value.
A 10% down payment is required on any motorcycle loan. Motorcycle financing breaks down into two options:
- New bikes. Up to 90% of the purchase price plus tax.
- Used bikes less than four years old. Up to the NADA retail value.
You must have five years of maintenance logs, four photos of all sides of the aircraft and a photo of the instrument panel, title search and a copy of the registration to apply for financing. Your name must also be on the Federal Aviation Administration registration file as the lien holder.
RVs loans can be broken down into three financing options:
- New motorized RVs. 100% of the purchase price plus tax, title and license.
- Used motorized RVs. Up to the wholesale price.
- Nonmotorized RVs. Up to 90% of the sale price including tax, title and license.
What are the benefits of FedEx Employees Credit Association auto loans?
- Specialized programs. Auto lenders that are willing to work with individuals with low credit or black marks on their credit history reports are few and far between. While first-time buyer programs are a little easier to find, FECA has the added benefit of working with buyers who have limited credit.
- Low starting APR. A low 1.49% APR is hard to beat when it comes to low interest auto loans. Impeccable credit is likely necessary, and your term needs to be 36 months or less to get this rate.
- Accessible application. Check on your application status at any time during the process after registering through the FECA website.
- Additional products. Members have access to a range of products including checking and savings accounts, investing services and other loans.
What to watch out for
No lender is perfect, and there are a few drawbacks when it comes to auto loans from FECA.
- Membership. Becoming eligible for membership isn’t easy. Without an immediate relationship to someone working at FedEx, or working there yourself, it’s not feasible to quickly get approved for membership.
- Unavailable information. Full APR ranges, maximum loan amounts and potential fees are all missing from its site. FECA only advertises its best APRs, so if you have poor credit, it can be difficult to compare this lender to others.
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FedEx Employees Credit Association reviews and complaints
|BBB customer reviews||1 out of 5 stars, based on 2 customer reviews|
|BBB customer complaints||4 customer complaints|
|App Store Score||2.8 out of 5 stars, based on 42 customer reviews|
|Google Play Score||4.2 out of 5 stars, based on 236 customer reviews|
|Customer reviews verified as of||16 October 2020|
You won’t find much in the way of customer reviews online for FECA. It doesn’t have a Trustpilot page, and its Better Business Bureau (BBB) profile doesn’t have more than a handful of reviews and complaints. The two negative reviews on its BBB page both have answers from FECA, and both reviewers complain of poor customer service. However, with only a handful of reviews, it may be helpful to talk with other members who’ve taken out an auto loan.
How do I apply?
Once your application for membership is approved, you can go online or call FECA to apply for an auto loan. You’ll likely need the make, model, year and VIN of the vehicle you’re buying. Here’s how to apply online:
- Go to the FECA website.
- Hover over Loans and click Auto Loans.
- Scroll halfway down the page and click Apply Now.
- Sign into your FECA account.
- Fill out the information for the loan you’re applying for.
- Review your information.
- Submit the application.
You can check your application at any point by calling FECA or logging on to the site. To access the loan status, there’s a second registration necessary.
I got the FedEx Employees Credit Association auto loan. Now what?
You’ve been approved, have your new car and you’re ready to get on the road. While you’re enjoying your new ride, consider a few features of your loan.
Automatic payments can help you avoid any late fees as long as you can consistently have the full amount due available at the same time each month. You can also take advantage of the other products offered by FECA, such as its checking and savings accounts, other loans and investing solutions.
A new car is a big commitment, and a great auto loan is essential to making the process smooth and cost effective. FECA provides a range of loan options no matter where you’re at in your financial journey. But its membership requirements make it less accessible than other lenders. Take your time and compare auto loan competitors to nail down the ideal offer for your situation.
Frequently asked questions
How do I qualify for the best rate?
Your credit score and the loan terms you request affect the rate you’re offered. Generally, you’ll receive a better rate when you have higher credit and a lower term.
Do I have to keep a savings balance to have a loan?
Yes. You must keep $25 or more in your savings account to remain in good standing with FECA.
If I stop working for FedEx, will something happen to my loan?
No. As long as your account remains in good standing, nothing will change.
Can I get a motorcycle loan without putting down 10%?
It’s not likely. FECA doesn’t indicate that there’s any way you can get around the 10% down payment.
Image source: fecca.com, Shutterstock