Both new and used car prices soared during the pandemic because of chip shortages and growing inflation. The latest data from the U.S. Bureau of Labor Statistics shows used car prices coming back to reality with the hope they’ll return to normal in the latter half of the year.
The combination of vehicle shortages, price increases and inflation has credit unions thinking about new, creative ways to identify opportunities to generate non-interest income. Let’s look at how auto lending education, mining your data to deliver timely messages and diversifying non-interest income should be a part of your overall auto lending strategy.
Auto Lending Education
Establishing a healthy pipeline of potential borrowers is key to growing your auto loan market share. This begins with communication. Communicating with all your account holders—regardless of whether they have an auto loan with your credit union—expands your target audience for financial education messaging. Over the last few years, many credit unions have leaned into the financial wellness education approach to engaging their member base. It’s a good approach and a great opportunity to weave auto loan education into your message mix.
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