SHERMAN OAKS, Calif. -- In response to higher gas prices, commuters are parking their SUVs and low-mileage cars in record numbers.
It's good news for the environment, but bad news for credit unions holding titles on those vehicles, said Grace Mayo, president/CEO of $600 million Telesis Community Credit Union, a primary owner of Autoland.
Members aren't the only ones who don't want their gas-guzzlers; dealers don't want them, either. It's a simple case of high supply and low demand, and it's sent Autoland clients clamoring for ways to reduce their losses on the unpopular collateral.
In response, the CUSO launched a new remarketing service this month, designed to provide credit unions with more resale value for repossessed and surrendered gas hogs. Autoland has two used car lots open for business, one in Southern California and one in Oregon.
"Even a couple hundred dollars per car really does help, and it shows up on the bottom line," she said.
Mayo said diesel-burning vehicles have been particularly difficult to unload, as diesel fuel has climbed to nearly $5.50 per gallon in the San Fernando Valley.