Pentagon Federal Credit Union said it is teaming up with CU Direct to make the car purchasing process easier and faster for members by giving them access to CU Direct's nationwide auto dealership network.

“The landscape of lending is changing and credit unions like PenFed can see the potential for auto lending growth in front of them,” Tony Boutelle, president/CEO of CU Direct, an Ontario, Calif.-based CUSO, said. “Auto loans are leading portfolio growth for many credit unions across the nation.

The partnership will allow PenFed, an Alexandria, Va.-based credit union with $19.4 billion in assets, to access CU Direct's network of more than 12,500 dealerships across the county in an effort to expand both membership and loan volume.

Credit unions more than doubled their auto lending in the past decade. In 2015, CU Direct-affiliated credit unions generated $26 billion in new auto loans.

“Growth is a key part of the equation when it comes to PenFed's ability to consistently deliver low-cost financing for its members,” James Schenck, president/CEO of PenFed, said.

Boutelle's organization offers credit unions a variety of services that use technology to help speed up lending in several areas, including auto loans. For instance, it allows credit unions to offer branded shopping services to members who are considering a vehicle purchase. It also offers tools that allow credit unions to follow up with members who are also shopping for a new home or credit card.

PenFed said it plans to offer a unique, risk-adjusted price approach to auto financing. The credit union does not require money down on any vehicle and does not increase the interest rate based on the model year.

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PenFed Partners With CU Direct

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