CHATSWORTH, Calif. -
Ron Frey was the CEO of Autoland prior to its purchase by Telesis and retains his title. The credit union previously was the co-owner of AutoSeekers along with California Bear CU. Walt Agius, who had been California Bear's president and CEO, as well as the president/CEO of AutoSeekers, joins Autoland as president.
Frey told Credit Union Journal Telesis' goal is to bring Autoland into the credit union sector and create a CU-owned entity. He said Autoland has served CUs for 36 years, but was owned by a venture capital group.
"The overall goal is to bring a new CUSO out to the entire credit union industry as a cooperative," he said. "Auto lending still is a core product for credit unions, but it is important for credit unions to have a way to differentiate themselves. Plus, people are looking for alternative means to shop for a car."
Consumers think of the car they want long before they consider financing, Frey continued. "The trust and loyalty of members grows when their credit union gives them a product they can't get anywhere else. If the process starts with the credit union, it is more likely financing will stay with the credit union."
Agius said Telesis did not purchase Autoland to own it "as Telesis." Instead, he explained, it will collaborate to form a national entity owned by all credit unions who are interested in serving members on the automotive side.
"It will be a strong program nationally, such as Co-Op Network or Financial Service Centers, not small or fragmented," Agius said. "When this is offered later this year, it will be similar to buying into an LLC CUSO."
The initial market will be California, Oregon and Washington, but over time, it will be available to all credit unions in all markets, Agius said.
"We've missed other opportunities to cooperate. This is not Telesis Auto Sales-it will be something bigger for the entire industry."
Frey said CU Vehicles will be a better alternative to other sources for facts and figures on automobiles because it can be personalized to the CU.
"When someone goes to Kelly Blue Book online, he or she is pelted with information on dealers and lenders. We must bring best of class information. We want to bring a proven model from the West Coast to the nation. We will grow and expand it in a way that supports the entire credit union movement."
Currently, there is little continuity between direct and indirect lending programs, Frey asserted. He said CU Vehicles will help solve this problem.
"There is an underserved market for credit unions seeking an indirect lending solution. There is an opportunity to bring programs to the marketplace, and we believe there should be a total solution out there. AutoSeekers has been developing an indirect lending platform, and bringing the two companies together will tie indirect and direct together for a total solution."
READER RESOURCES
Readers can find more information on Telesis Community CU and Autoland at:
* www.telesiscu.com.
* www.autoland.com
