3 more ways to prepare for ‘Carmageddon’

…whether or not it arrives.

About midway through 2018, the drastic falloff in auto lending predicted by some auto lending industry analysts—dubbed “carmageddon” by some—hasn’t come to pass. Vehicle sales are still robust, reflecting a slower-than-expected rise in the U.S. prime rate. Even so, a “hold the line—everything’s fine,” attitude could be a strategic mistake. CU Management magazine’s June issue special report on lending will offer five ways to make the most of your auto loan portfolio, especially if you’re depending on low-margin indirect lending volume. Here are three more:

1. If you’re committed to indirect lending, promote that—don’t spend too much on in-branch pre-qualification campaigns. “A lot of credit unions don’t market strongly enough that you can walk into a dealership, sign all the papers there and still get the loan through your credit union,” says CUES member Bill Vogeney, chief revenue officer, $5.1 billion Ent, Colorado Springs, Colo., and author of CUES’ monthly “Lending Perspectives” column. “Instead, credit unions are more likely to do promotions to get people to come to a branch, get pre-qualified and then go to the dealer. It’s a double expense [to promote] both sides of the operation. Don’t be afraid to promote your indirect program.”

 

continue reading »

More News