Auto Revival Wave Is There to Ride: Guest Opinion
Auto lending has traditionally been the backbone of many credit union lending operations.
Some lenders have recently benefited from the Cash for Clunkers program and from the rebound in auto sales since the recession.
Let your members know that you sell the same ancillary products as a dealer at a superior value. Products such as guaranteed asset protection, credit life and disability insurance, and extended warranties generate much needed noninterest income and help protect the collateral, the borrower, and the credit union. Make sure your employees offer these products on every eligible loan, give your employees an incentive to sell, and integrate the sales and fulfillment process into your loan workflow.
Educate your member on how to buy a vehicle and provide tools to help them successfully shop and negotiate. Can members and potential members apply online, get approved automatically and sign documents electronically? Does your website offer links to online values, vehicle history reports, and online vehicle shopping?