Developing Profitable Auto Loan Growth

A competitive auto finance environment has made it increasingly difficult for credit unions to maintain and grow auto loan portfolios, with new car loans being a particular challenge. With the appeal of 0-percent APR financing, no-money-down offers and other incentives, member auto loan opportunities are continually at risk of being lost to dealer financing.

Institutions are tasked with reducing this risk by enriching the value of the credit union relationship for members. Demonstrating that a member’s financial interests are best served at the credit union is an uphill battle—members frequently don’t understanding the added and unforeseen costs often included in “attractive” dealer finance offers before they’ve already committed to paying them.

A Solution

By offering members a value-driven, car-buying experience, as well as competitive auto finance products, credit unions can differentiate themselves as a trusted car-buying resource, and eliminate member exposure to the dealer or another financial institution where the financing is at risk. A strategic partnership with Autoland is one way to do this. In essence, Autoland operates as a concierge auto-buying service for members and a direct auto loan delivery channel for credit unions. Through this partnership, credit unions can leverage the industry’s largest auto-buying service, which includes a multi-state dealer inventory network, to generate quality direct loans, and provide a great auto-buying experience to members.

Autoland is a credit union-centric organization with more than 40 years of experience delivering quality auto loans to credit unions by delivering cars to their members. This turnkey service can be implemented quickly with executive and member services staff ready to support the credit union relationship to profitability.

Continue Reading