1

Updates, News, and Benefits For Telco Members

2016 • First Quarter

Connecting Families& Building Futures

Telco Branches Will Be Closed On The Following Holidays

Memorial DayMonday, May 30

Prepare Before You Shop to Get the Best Car DealIf you’re in the market for a new vehicle, you’ll be faced with lots of choices and decisions. It’s nice to have choices, but when it comes to picking the right vehicle and the right financing options, they can be confusing or downright expensive. This edition of The View provides Telco members with information to help make better choices and to save money.

If getting a good deal is important to you, it’s critical to prepare for all aspects of a vehicle purchase before you even begin to shop. Otherwise you’re likely to pay too much.The first step in preparing is to figure out exactly what kind of vehicle you want. Ask yourself how big it needs to be, whom and what you’ll be transporting, and how important fuel economy and various safety features are to you. Also consider what extras you want. If you’ve decided beforehand what features you need, you’re less likely to get talked into adding others. There are numerous publications and online resources available to help you decide what car best suits you. For example, Edmunds’ buyers’ guides (edmunds.com), Consumer Reports (consumerreports.org), the Kelley Blue Book (kbb.com), and J.D. Power and Associates (jdpower.com) all include vehicle descriptions, ratings, reviews, comparisons, and other useful information.It’s also important to know what monthly payment amount fits your budget. As a rule of thumb, your total monthly car payments--for all vehicles you own--shouldn’t exceed 20% of your monthly take-home pay. Most importantly, “You need to know how much your desired vehicle is selling for in your area. It might be quite different from other markets. One source for this information is Edmund’s True Market Value Pricing page ( http://www.edmunds.com/tmv-alerts.html). If you plan to finance your purchase, get preapproved for a low-interest loan at your Telco branch before you shop. Then, with financing in hand, you can negotiate on a cash basis with dealers.Lastly, find out what your existing car is worth so you don’t accept an excessively low trade-in offer. Then, visit a number of dealerships and see what they’ll do for you. The more information you walk in with, the better deal you’ll walk out with.”And, talk to your Credit Union, we’ll help you get the best deal possible.

Member Benefits

Save To Win Program

Telco Member Wins $10,000See Page 4.

2

How to Cut the Cost of DrivingGasoline prices have been low latey, but fuel is just one factor in the cost of driving an auto. According to AAA the average cost of driving a car 15,000 miles a year will cost you around $8,700, or 58 cents per mile. You could spend up to 70.8 cents a mile, or $10,600 a year, to put 15,000 miles on an SUV with four-wheel-drive.Many factors feed the cost of driving: financing, depreciation, maintenance, insurance, and driving habits. Financing: Your Credit Union often offers the best rates on loans, but you also should think about the loan term, fees, and prepayment penalties. If a dealer offers a rebate, you may save more money by taking the rebate and financing at Telco than taking the low-rate loan the dealer is attaching the rebate to.Depreciation: Depreciation is usually the largest part of the cost of driving: AAA estimates the average annual depreciation on a med-level car driven 15,000 miles per year at $3,654. Kelley Blue Book says that after five years, the average car is worth 35% of its sticker price. But some cars, like Honda and Toyota, have much lower depreciation. Ignoring the current value of a used car can put you “upside-down” if you trade the car and pay off the loan: You owe more on the car than it’s worth. Maintenance and repair: AAA estimated the maintenance costs of sedans at 5.11 cents per mile in

2015. Maintenance costs varied widely by vehicle type but, on average, were up slightly from 2014. Insurance: AAA estimated insurance costs for the average sedan at $1,115 per year, based on a low-risk driver with a clean driving record. Insurance for drivers who are male, younger than age 25, or have a record of moving violations and/or accidents is more expensive. Raising the deductible and reducing the maximum coverage can lower premiums but will increase your risk. You might want to check out your Telco member options with TrueStage insurance. Driving Habits: Drive defensively. Be extra alert during rush hour commutes. And you know we have a lot of extra holiday traffic here in Western North Carolina. ◆ Keep tires inflated to improve mileage and cut the chance of a blowout. ◆ Drive mild, not wild: Accelerating slowly and coasting up to stoplights can improve gas mileage up to 30%. ◆ Use the cruise control for highway driving to save 4% to 14% in gas. ◆ Drive less to save on gas, oil, maintenance, and deprecation. Think about carpooling, taking public transit, biking, or walking.

TruStageTM Auto Insurance You want a quality product you can depend on with rates you can afford. On average, credit union members who switch save up to $427.96* on car insurance with TruStage. And it’s only for credit union members like you. That means you’ll get competitive rates, helpful guidance without sales pressure and quality products trusted by Telco. For a no obligation quote call 888.380.9287 or use the online link from www.Telcoccu.org.

Branch Locations& Business Hours

Asheville - Leicester Branch710 New Leicester Highway

Asheville, NC 28806828.225.5919

Asheville - Downtown Branch36 Tunnel Road

Asheville, NC 28805828.252.6888

Skyland Branch1871 Hendersonville Road

Asheville, NC 28803828.210.2090

Candler Branch1141 Smokey Park Highway

Candler, NC 28715828.633.6604

Weaverville Branch34 Northcrest Road

Weaverville, NC 28787828.645.6003

Hendersonville Branch1452 7th Avenue East

Hendersonville, NC 28792828.595.9841

Morganton Branch127 West Parker RoadMorganton, NC 28655

828.433.0016

Hickory Branch355 US Highway 70 SW

Hickory, NC 28602828.322.8566

Branch Hours:Monday - Thursday8:30 am - 5:00 pm

Friday: 8:30 am - 6:00 pm

Drive-Thru Hours:Monday - Thursday8:30 am - 5:30 pm

Friday: 8:30 am - 6:00 pm

3

www.TELCOccu.orgYour Online Resource For...

Home BankingOnline Bill Pay

Mobile BankingCurrent Rates

Latest Telco NewsFinancial News

Consumer Education

800.222.1025Talk To Your Telco

Member Services Representative

* Certain Restrictions May Apply ** APR Annual Percentage Rate

What Is “GAP” And Why Should You Care?A wrecked vehicle can wreck your finances... if you owe more on your loan than your insurance will pay.Guaranteed Asset Protection “GAP” is like an airbag for your vehicle loan. It can help fill the gap between what your vehicle insurance will pay and what you owe on your loan, to cushion you against sudden out-of-pocket expenses if your vehicle is totaled.The second you drive your new vehicle off the lot it drops in value. It can drop as much as 50% in 5 years. This can create a GAP in coverage.

Fair market insurance value isn’t always fair. There may be a GAP.

TIP: Getting your GAP protection from Telco is usually a much better deal than purchasing it from a dealer.

Telco members have access to Members Choice GAP protection.

Enjoy your spring with some extra green...

$100 Cash To You*

*Certain restrictions may apply

Apply Today

In a Branch Online at www.TELCOccu.org

Call 800.222.1025

$100 Cash To You*◆ Offer available April 1 - June 30, 2016 for vehicle loans of $10,000 or more*

◆ Applies to vehicle loans obtained at a Telco branch, online at www.Telcoccu.org, or call 800.222.1025

◆ Applies to new purchases or bring over existing loan

4

Top 10 Smartest Car Buying TipsBecause we’re here to help you spend less and save more1. Compare annual percentage rates (APRs). The lower the APR, the less you will pay in loan interest. You can often get a lower rate if you have a good down payment. Check Telco’s rates, which are typically lower than conventional banks.

2. Consider buying used. The average cost of a used car is less than half of a new one. Interest rates on new cars generally are lower than on used cars, however, you may have to take out the loan for a longer term to comfortably afford the monthly payments. Don’t overextend your budget and risk defaulting on the loan.

3. Compare insurance. North Carolina lenders will require collision and comprehensive insurance on new and used vehicles. As a Telco member you have access to discounted TrueStage insurance, and GAP insurance.

4. The less you borrow, the more you save in loan interest. In most cases, applying a manufacturer’s rebate to reduce the amount you need to borrow will be cheaper than taking the dealer loan. Combine a rebate with your credit union’s low loan rate and you may have the best of both worlds.

5. Pay off the loan as quickly as you can afford to. Paying a loan off early can save hundreds in interest charges.

6. Ask TCCU to preapprove your loan. This way, you can bargain for a dealer discount based on a cash sale, and you can avoid high-pressure sales for a dealer loan.

7. Understand the loan contract. Reading through all that legalese of the car dealer loan is a chore and takes time, but it’s worth it to ensure you’re getting a fair deal. Don’t be reluctant to ask questions.

8. Do as much research as you can. Check online resources such as Cars.com. Everything you need is right here, finding available new, used and specialty vehicles near you. Search by vehicle type or price, get reports, use loan calculators, and learn from articles.

9. Evaluate your financial situation. If you’re a first-time borrower, you can’t rely on a credit history to speak for you yet. You should talk to a Telco representative about our First Time Buyers program.

10. If you have a good credit history, you have plenty of affordable borrowing options. If you made payments late or didn’t fully pay on past loans, you may be required to have a co-signer who would agree to be responsible for the loan should you fail to pay.

Bonus Tip For First Time Buyers: Download the First Time Auto Buyers Guide at www.TELCOccu.org/auto-loans

TCCU AnnualMembership Meeting

Connecting Families & Building Futures

Tuesday, April 12, 20166:00 PM

WNC Agricultural CenterVirginia Boone BuildingSee Directions On Back

It’s Your Meeting...As a Member of the Credit Union, you’re also an Owner. So come join us, hear what’s going on at your Credit Union

• A Brief Business Meeting • Complimentary Dinner • Door Prizes • Bingo Games Pay Cash Prizes

Let us know you’re coming...The Annual Membership Meeting is intended for Members Only. Each member may bring a spouse or one guest. Please RSVP one of two ways:• Put your name on the “Annual Meeting Sign Up” sheet in the branch• Call us at 800.222.1025

Save-To-Win is a special savings certificate that helps you build your savings while also giving you chances to win one of four $5,000 grand prizes, plus monthly and quarterly

cash prizes from $25 to $500! Each $25 that you deposit into this certificate helps you build your savings and gets you another chance to win - up to 10 chances every month! That’s up to 120 this year. Plus, all the money you deposit into the Save to Win account is still yours... earning interest.

It’s a win-win situation!

Save To

Jeff Parlier 2015 $10,000 Gran Prize Winner & Telco member