Representatives from a number of large credit union met here to discuss cooperative strategies for increasing market share in the indirect auto lending market as part of the first-ever national indirect auto lending summit. The meeting, sponsored by Credit Union Direct Lending and Callahan & Associates, attracted more than 60 CEOs and senior lending executives from 34 credit unions and five auto lending CUSOs.
Recognizing a decline in auto lending market share and increasing competition from 0% financing campaigns, the group discussed how credit unions could work together to increase their indirect market share. Among the topics discussed were strategies on how to work most effectively with dealers, ways to aggregate credit union volumes, collaboration or competing with other lending platforms such as Dealer Track and Route One, and how to present and enhance credit union value to both members and dealers.
An immediate priority for many of the credit unions on hand was aggregating efforts around common technology and marketing. The group also agreed to sponsor a third-party study on the most effective indirect auto lending models and best practices will be completed, and agreed to form a coordinating committee to develop the opportunities suggested during the conference.
"Credit unions are known for providing members great auto loans and must develop an effective way to continue offering competitive auto loan opportunities," said Jeffrey Farver, president of San Antonio Federal Credit Union. "Many credit unions have noticed an increase in auto loan portfolios in markets where credit unions have organized their indirect financing on a common lending platform."
A follow up meeting will be held during CUDL's Auto Lending Symposium in Las Vegas on June 18-20.
-From CU Journal Reports