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. Understanding the reasons for the growth in indirect lending can help your credit union to secure its place in this fast-growing lending field. Here are some key factors in the growing popularity of these auto loans in the competitive marketplace.
Added Convenience for Consumers
By offering auto buyers the opportunity to finance their vehicles right on the dealer lot, indirect lending for credit unions can offer the greatest possible convenience for those already in the frame of mind to buy. Indirect auto lending allows car buyers to show up at the dealership and walk out with financing and a new vehicle on the same day. These indirect lending options can make the car, truck and SUV buying process much easier for your credit union members and for newcomers to your financial institution.
Improved Acquisition of New Members
The right indirect auto lending solutions could lead to increased memberships in your credit union. This can allow you to increase the financial stability of your organization while ensuring that you can provide the best and most comprehensive financial services for your current members. Working with local auto dealers can boost your visibility within your community, making indirect lending a solid choice for credit unions interested in increasing their presence and reach in their areas.
Reduced Regulatory Requirements for Credit Unions
Credit unions can offer significant advantages for auto loan customers. Because your credit union is owned by its members and operates on behalf of their interests, many of the requirements that have been put in place by federal agencies for lenders do not apply to your organization. The reduced burden of regulatory compliance placed on your credit union can often provide you with a competitive edge when offering indirect lending arrangements through dealers in your local community.
Improved Relationships with Auto Dealers
By building a mutually beneficial and practical relationship with key dealers in your area, you can often increase the number of loans referred to your credit union. Engaging in some practical public relations work with these dealerships can help you to build solid working relationships that can pay off in increased profitability for your organization and its members.
Credit Union Acceptance Company (CUAC) offers proven strategies and advanced options for credit unions interested in expanding into indirect auto lending for their members. We work with credit unions of all sizes to provide software applications or full-service solutions for your indirect lending needs. Call us today at 866-970-2822 to discuss ways in which CUAC can help you establish an indirect lending program for your members. We look forward to the opportunity to serve you.