How credit unions fixed the one thing you hate about dealerships

by. Jennifer Calonia

Shopping for a new car at the dealership is often analogous to standing in line at the DMV or walking into a job interview, nerves in tow. This negative sentiment is usually the product of car buyers’ perception of pushy dealership salesmen and the terror of having to negotiate pricing and auto loan rates when financing a purchase.

There’s an innovative new relationship in the car dealer industry that’s picking up speed, however. More and more dealerships are actually assisting buyers by linking them with credit unions to help them access affordable auto financing terms and other financial benefits beyond the dealership lot.

A Convenient Auto Financing Partnership for All

A number of car dealerships are teaming up with local credit unions through partnerships like Credit Union Direct Lending (CUDL) and other independent, preferred-dealer programs. CU Direct, the creator of CUDL, reported that 1,072 credit unions were supported in 2013 through credit union-dealership programs, resulting in a year-over-year increase of 10 percent in successfully processed auto loan applications, totaling more than 2.8 million.

Whether car shoppers visit these preferred dealerships at their credit union’s recommendation or are introduced to credit unions because of this initiative, borrowers hopping aboard this collaboration have a number of benefits to look forward to.

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