LAKE SUCCESS, N.Y. — Because approximately 90% of all franchised automotive dealers in the United States are active users of DealerTrack's credit application portal, David Trindler, the company's senior vice president of network solutions, wants CUs to know its process affords a quick response, which is key to getting the loan.
"The credit union can answer back–rapidly–so the credit union, no matter its size, that provides a fast approval can perform as if it were a Chase Bank. I believe we level the playing field for credit unions."
DealerTrack has a diverse network of some 500 lenders, including credit unions, banks, finance companies, captive finance companies and regional banks, which electronically submit credit applications. "We work with 150 credit unions directly, but in fact, the total number is over 400 credit unions, because the rest do it through an aggregator."
How is DealerTrack helping CUs in these tough times for auto sales in a slumping economy? "We're cognizant that the credit union way of doing things and communication with members is different than they way banks do it, and we respect that difference. One of the things we did to learn more in order to help more is to create a CU advisory council. They give us feedback and ideas and provide a necessary link."
Trindler said that of the 22,000 dealerships in the DealerTrack network only about 10,000 are sending applications to credit unions. "Our purpose is to expand on that network for credit unions. The CU will see the right deal and the customer it will want to see when using DealerTrack's platform."
"We're not a bank so we don't make the credit decision, but the functionality will filter every deal and through the software will help guide the dealer to send the application to the right financial institution or credit union. Lenders actually do the filtering process, but not all of them make use of it. The point is that the lender controls it and they decide."
Explaining that DealerTrack's platform is "merely a conduit pipe that allows the deal to be made" because the credit application goes to all lenders (each of whom filter the parameters of what they want to see individually) the loan usually goes to the swiftest. "Some respond faster than others," Trindler admitted.
But for those CUs that use the network to its advantage, the result can be measurable success.
Desert Schools Credit Union in Phoenix, Ariz., is the top ranked (and15th in the nation) for credit union auto loans, according to just published the Callahan & Associates 2008 Credit Union Directory. "This is another significant milestone for us, especially in a tough market," stated Robin O'Rorke, senior vice president for the credit union.
Desert Schools assistant VP of consumer lending Susi Bennett appeared in a DealerTrack ad to promote its lending network as helping the CU "grow its auto loan market share." Bennett is a member of DealerTrack's CU advisory council.
–cburger@cutimes.com
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