Credit unions offer significant benefits and advantages for their members. These value-added services can serve as a strong selling point for your indirect auto lending activities and other loans offered by your institution. By building on the trust your members already have in your credit union, you can often expand your portfolio and ensure the greatest returns for your members. Here are some of the most important advantages of choosing a credit union for auto lending arrangements.
Improved Customer Service
Credit unions have generally earned a solid reputation for outstanding attention to the needs of their members. This can make a positive difference in the lending experience for indirect lending customers who obtain their auto loans at the dealerships in your area. By providing them with the responsive services for which your institution is rightly known, you can ensure the best options for your members when they are ready to purchase their next vehicles.
The 2018 FIS Performance Against Customer Expectation study found that 92 percent of credit union members said they were extremely or very satisfied with their credit unions. This contrasts favorably with the 82 percent of bank customers who rated their customer experiences highly. By promoting your credit union as a trusted source of indirect auto lending financial options, you can expand your portfolio of auto loans and can ensure that your members are aware of your services when it is time for them to upgrade or replace their current vehicles.
One of the most important elements in promoting your credit union indirect auto lending activities is the access you already have to your members. Your credit union has built positive relationships with many of its members. By letting them know that you can provide auto loans through local dealerships, you can ensure that your organization gets its fair share of the auto loan market in your area.
Connections With Local Dealerships
Creating a network of preferred dealerships in your area and working exclusively with these auto dealers can help you to manage risk while maximizing your potential for profits on behalf of your members. Building solid connections with these dealerships can increase the likelihood of acquiring loans through your indirect auto lending network. This can help you boost your profitability on behalf of your members.
At CUAC, we specialize in helping credit unions maximize their ability to serve their customers with indirect lending solutions designed specifically to suit their needs. We can deliver the most practical options for your credit union and can help you achieve greater financial stability, higher financial returns and a more diversified portfolio of auto loans for your institution and your members.