Essential ideas for starting an indirect lending program
Understand the market, choose well among the technology options and develop great relationships with dealers.
In 2023, new vehicle inventories are finally projected to begin returning to normal. Following a record-high average price for new vehicles, auto lending is set to have an interesting year, given the current environment in rates and economic pressures. For credit unions considering entering the indirect lending space, there are effective ways to launch your program and grow your loan portfolio.
If your credit union is new to indirect lending, be aware that the market is well-populated with lenders that include captives, major banks and large finance companies. Competition is tight, but there are best practices your credit union can follow to ensure success.
In this article, we look closely at a few best practices for starting an indirect program, along with ideas that credit unions can use to maximize their success and match their members to the right financing.
Understand The Market
For credit unions, indirect lending is about developing dealer relationships—and being consistent with them. Find the dealers that are a good fit for your credit union and will appreciate working with credit unions that know their communities.
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