Loans are first of their kind
The 2009 Acura TSX is SmartWay certified.
U.S. Bank has become the first major bank in the U.S. to offer an interest rate rate reduction on auto loans for environmentally friendly cars. Specifically, any personal loans taken out on EPA-certified “SmartWay” vehicles will get a half percentage rate reduction.
What is a SmartWay vehicle?
In order to be certified as SmartWay by the EPA, vehicles must have low emissions as well as good fuel economy.
These should not be confused with hybrid or alternative fuel vehicles.
More choices
U.S. Bank says it is offering the loans because it wanted to reward people who were buying environmentally friendly cars, but it didn’t want to restrict customers to purchasing electric or hybrid vehicles.
Hybrids, and especially electrics, are still a bit on the pricey side for some families, especially those in need of debt relief. However, traditional low-cost vehicles can be good for the environment, too, and U.S. Bank wants to recognize that.
How common are SmartWay vehicles?
According to a press release from U.S. Bank, 16 percent of 2009 vehicles are certified as SmartWay. Each certified vehicle gets a sticker identifying it as such, kind of like the EnergyStar labels on appliances.
Eco-friendly 2.0
On top of creating an incentive for consumers to drive environmentally friendly vehicles, U.S. Bank is changing its own practices. U.S. Bank will not print paper statements regarding these loans. Instead, they will set up automatic payments from individuals’ U.S. Bank accounts.
Can I save cash on a clunker?
The loans are available to finance purchases of both new and used cars. However, U.S. Bank will only finance cars up to six years old with the reduced-rate SmartWay loans.
More on SmartWay vehicles
The EPA says vehicles are rated on a scale of one to 10 regarding greenhouse gas emissions and air pollution. Vehicles must get a six or higher to receive SmartWay certification.
Vehicles that get a nine or higher are deesignated “SmartWay Elite.” You can search for SmartWay certified vehicles on the EPA’s Green Vehicle Guide at http://www.epa.gov/greenvehicles/Index.do.
It is good to see a bank making an effort to offer creative incentives to draw customers.