As Covid-19 is putting a pause on new car purchases and struggling rental car companies such as Hertz and Enterprise are selling their fleets at rock-bottom prices, more consumers are buying used cars.
Most of these buyers will need to finance their purchases, presenting a great opportunity for credit unions to attract more members. However, not many consumers understand the advantage of borrowing from a CU. Here’s what a credit union can do to originate more auto loans in the post-pandemic market:
Promoting the Benefits of Getting Auto Loans From a Credit Union
Build awareness and educate your audience why they should consider getting an auto loan from a CU by communicating these benefits:
- Lower interest rates, fees, and loan minimums: the interest rate ofmost car loans from credit unions are at least 1% lower than banks. You can compare the current bank rate with your interest rate, then show the savings members can get over the life of the loan.
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