Remembering the good ol’ days….
Recently, I recalled the slogan “Baseball, Hot Dogs, Apple Pie and Chevrolet”. We had a Chevy in the driveway, we watched baseball, and Grandma made Apple Pie on Labor Day.
Sometimes we get so busy reacting to the current trend, that we forget what works. Yes, the spring season is finally upon us, car sales are popping up, and rates are still low. This year is projected to be very strong not just for manufacturers and dealers, but also FI’s.
How can you grab a piece of the pie?
Going after brand new auto purchases might be a no-brainer, but what about the members who have equity in their vehicles? They are ripe pickings for a trade-in and a new loan, too. Have you made the credit union top-of-mind through direct marketing to help ensure these members don’t make the mistake of financing at the dealership or bank?
Just like the smell of hot dogs at the ballpark, that new car scent is upon us and now is a great time to scrutinize your entire auto loan portfolio. Take a look at the exposure you’ve got from loans coming to term in the next twelve months, as well as those who have paid off any loans. Formulate a direct marketing strategy to reach these members in case they’re thinking of trading, or want to use the equity in their vehicle for another purpose.
Learn the quality of your auto loan portfolio. Having this information helps you recognize the exposure your credit union has in potential loan turnover and loss. Millions of dollars in auto loans could walk out of your door to a bank or dealership.
Consumers are loosening their wallet and shopping for vehicles to replace those they’ve held on far longer than they historically have. Targeted direct marketing can make a difference. Your lending team can pre-approve or prequalify your members before they go out to shop for a new car. Arm them with money to shop realistically for a new car— and you keep their business.
Just like Chevrolet, members are The Heartbeat of America.
