ONTARIO, Calif.-Pay little attention to any second-half forecasts that call for a softening in car sales.
Tony Boutelle, president and CEO of Credit Union Direct Lending (CUDL), said his company has not yet seen any signs of a sales decline, and even if there is a drop-off, it will be slight. "I believe the current forecast is for 14.2 million (new car) units to be sold this year, and if we see a falloff, talk is it might be 13.8 million. Still a good year for car sales."
Boutelle reminded that the first quarter showed auto loans up 33% over Q1 2011. "So if you are in the auto sales or auto loan business, you are doing better."
Credit unions are picking up a greater percentage of the overall auto loan business, partly fueled by sand state CUs becoming more aggressive with auto loans, noticed Boutelle.
However, when it comes to battling for loans, it will be the same story played out the remainder of this year as during the last few years, insists Boutelle. "The market is very competitive. Credit unions are having to get pretty aggressive and focus on all spectrums of auto lending."
For direct, Boutelle said that requires more preapproval programs, finding ways to make it easier for members and dealers to close the loan at the dealership, and working with mobile apps, which consumers are using more often to find and even negotiate deals, pointed out Boutelle.
For indirect, it remains about relationships, Boutelle reminded. "But more than just the F&I guys; build relationships with the general manager and storewide."
Forecasts call for 40 million used cars to be sold this year, and Boutelle sees that driving up loan opportunities even more. "Given that cars are having to last longer, and they are, instead of a vehicle being sold three to four times before it is salvaged, now you are seeing cars sold five and six times. That means more loan opportunities."
