LANSING, Mich. — Cash for Clunkers may have temporarily reduced Invest in America activity, but it's likely boosting CU auto loan volume, according to CUcorp.
"I think Cash for Clunkers has been positive for credit union loan volume simply because showrooms are filling up and more people are buying cars. Credit unions are well positioned to get a lot of that financing because of Invest in America," said David Adams, president and CEO of CUcorp, a subsidiary of the Michigan Credit Union League that developed Invest in America.
Cash for Clunkers may be stealing some Invest in America business since Chrysler temporarily suspended its Credit Union Cash offer through the credit union auto-buying discount program. Chrysler is still under contract with Invest in America through the end of the year.
"Chrysler's Credit Union Cash program was temporarily suspended about the third week of July and that may continue through August. I expect it to be back, possibly in September," Adams said. "Chrysler discontinued all of its incentive programs and went all in on Cash for Clunkers."
GM is currently offering its Supplier Pricing discount plus $250 through Invest in America. GM is also under contract with Invest in America through December.
Adams said CUcorp has learned that while the automakers may be under contract, the credit union member deals often don't stay the same. "We have learned that these programs have to be dynamic," Adams said.
While the deals may change, sales through Invest in America are strong and steady, Adams said. "Invest in America has sold 161,000 cars through June and generated 130,000 new cars loans. Over half of the 500 largest credit unions actively support Invest in America, and we have over 1,900 credit unions in the program nationwide." Adams said that CUcorp will soon announce GM enhancements to the credit union car-buying program, and that two other companies will come on board with Invest in America. The program's partnership with Ford has begun through a leasing discount pilot, and GM is also participating. The program provides subvented financing money for credit unions — $750 from Ford and $1,000 from GM — on certain car models when credit unions write the leases.
