A sustained demand for new cars has helped Autoland Inc. post positive earnings through August, the auto buying CUSO said.
The Chatsworth, Calif.-based company said Monday that it experienced a 25% sales increase from the same period in 2011 while net profits exceeded last year’s profitability by 99%.
“The sustained health of the new car market has allowed us to demonstrate how well we drive quality direct loans to our partners by providing an exceptional auto buying experience to their members,” said Autoland President Jeffry Martin. “Meeting the car buying demands of members has allowed us to surpass our 2012 sales projections with new car volume outpacing the industry sales rate.”
Martin said 70% of the loans generated from the Autoland channel are in new autos. The CUSO’s loan retention rate for its credit union partners is 83%, he added.
Autoland has also added 15 new credit union partners over the past nine months and will expand to 50 in-house offices by the end of the year, the CUSO said.
Formed in 1971, Autoland became a credit union-owned entity in 2007 through the former Telesis Community Credit Union and two other California cooperatives, Kinecta Federal Credit Union and California Agribusiness Credit Union, through CU Vehicles LLC, a holding company owned by the credit unions.
The NCUA is currently looking at potential buyers to purchase Telesis’ stake in Autoland.
Autoland said it now serves more than 200 credit unions nationwide.