In the midst of sluggish vehicle sales, Randolph-Brooks Federal Credit Union has marked a huge lending milestone.
The $4.3 billion credit union in Live Oak, Texas said it recently exceeded $1 billion in auto loans for the first time in its 59-year history.
“We’ve seen an increase in members who have taken advantage of our low-rate loans for an auto loan or to refinance a vehicle. At the same time, we’ve also seen many new members join RBFCU because of our low rates, then transfer their other accounts to us because they receive a superior value on overall products and services,” said Mark Sekula, chief lending officer for RBFCU.
Much of the loan volume has come from vehicle refinancing, according to the credit union.
“Refinancing is one of the most profitable decisions a purchaser can make; by refinancing a vehicle, you essentially pay less interest for the same product, and put more money back into your pocket,” Sekula said.
The credit union said it dropped its auto loan rate to 1.9% APR at the beginning of June and has seen an increase in loan applications and approvals since that time.