The right point-of-sale and indirect lending solutions assists your credit union to attract more members for your organization. Surveys show that significant growth is achieved by expanding into the indirect auto lending marketplace. You should consider offering indirect loans through selected auto dealerships in your area.
A number of factors are involved in putting together a successful auto loan. At Credit Union Acceptance Company (CUAC), we specialize in providing support for indirect auto lending arrangements for the credit unions we serve. Understanding the elements of the auto loans you offer can help you provide the most practical assistance to your members in the competitive lending environment. Borrowers should consider a few important points when taking on a new auto loan.
Keystone Lending Alliance (KLA) is celebrating its 10‐year anniversary in 2018 and in that time, has become the leading indirect lending CUSO for credit unions in Pennsylvania. Located in Wexford, PA, just outside of Pittsburgh, KLA is providing a multitude of indirect related services to over 30 credit unions throughout the state.
Providing the best services for your members is critical to the success of your credit union.
As Credit Unions look for efficiencies and economies of scale within the indirect auto lending space, collaboration has become incredibly important. Many indirect lending programs available in the market today encourage competition among credit unions and participants find themselves cannibalizing each other’s members, sacrificing profitability for lower rates and focusing on less quality due to desired higher volume.
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.
When credit unions think of indirect lending, the first thing that comes to mind is risk. Risk is inherent with any type of lending; however, with indirect auto lending, risk can be exacerbated by elements created by the dealer and the inability for the credit union to personally interact with the member.
Indirect auto lending arrangements are on the rise. Credit unions and lending institutions can maximize their profits and diversify their investment portfolios by making sure they get their share of this expanding sector of the economy.
Indirect auto lending arrangements can provide added help for your credit union in acquiring new customers and ensuring that you get your fair share of this valuable sector of the consumer loan marketplace.
Most credit unions are apprehensive to dive into the indirect lending world and for good reason; starting an indirect auto lending program can be overwhelming.