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Security Service Slects AFG

HOUSTON-Auto Financial Group, an online provider of residual-based financing products for CUs, has signed an agreement with Security Service FCU, which calls for the credit union to offer AFG's Driving Sense program to its indirect lending dealer partners. The program guarantees the pre-determined residual value of a vehicle through third-party insurance, removing the financial risk of an auto loan, allowing CUs to compete with traditional loans and conventional leases.

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Forecast: Vehicle Loans To Be Even

MADISON, Wis.-A forecast by CUNA Mutual Economist Dave Colby is projecting that vehicle lending by credit unions during 2005 will be relatively flat compared with 2004. Vehicle loans by credit unions slowed in the second half of 2004, finishing the year with a 7.5% year-on-year gain, slipping from an 8.9% gain the previous year, but higher than the 5.2% increase posted in 2002.

"In December we saw an exceptional new light vehicle sales rate, but it appears that CUs did not fully participate in the sales surge as the new vehicle portfolio was up 0.3% for the month," said Colby.

The analysis said that while the rate of increase was very strong for new cars at 11.4%, the best performance since 2000, the gain in used vehicle loans lagged with just a 4.5% increase. Used vehicle loans had increased 12.5% in 2003. The percentage that vehicle loans had in CUs portfolios was 37.3%, down slightly from 2003.

"Going forward, we see annual growth in the 7% to 7.5% range over the next couple of years.

CU Car Loans In The Showroom

RICHARDSON, Texas-CU Car Loans has been introduced by Institution Solutions, Inc. (ISI) to help credit unions serve the up to 40% of auto loan applicants at credit unions who are declined and sent to find financing with competitors, the company said. It is not an insured loan program, ISI stated. CU Car Loans offers on-line and off-line enrollment procedures and there are two websites for loan applications. Credit unions use one of the sites to submit loan applications on behalf of their members. The other site is accessed by members through a link on the credit union's web site where they apply online themselves. Applications by FAX or phone to ISI are also available.

For info: (800)356-7526 or

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