UTICA, N.Y. – GPO FCU said it has contracted with Auto Financial Group for the company’s DrivingSense as both a direct and an indirect lending option.
DrivingSense is a low-payment vehicle financing product that offers the lease-like benefits of a balloon loan to credit unions and their members.
The DrivingSense CarBuilder calculator, a customized secure website, provides AFG's credit union partners and their members with the ability to “build” vehicles and compare payment terms with conventional loans in one easy process. Credit union members receive the benefit of a low payment (often as much as 40% lower than a conventional loan payment), flexible two- to six- year terms, actual ownership of the vehicle and several end-of-term options, including the lease-like option of being able to surrender the vehicle and walk away in lieu of paying the final loan payment.
AFG said DrivingSense removes the financial risk to the credit union by guaranteeing the predetermined residual value of the vehicle through third party insurance, as well as handling the vehicle’s disposition at the end of the term. AFG is paid one low administration fee for each DrivingSense loan, while the credit union earns all the interest. Credit unions are protected while building an important relationship with their members.
Auto Financial is based in Houston.
