ONTARIO, Calif. More credit union members, especially younger ones, are placing as much emphasis on convenience as rate when shopping for a car and closing the loan.
Citing statistics from a Deloitte’s latest Gen Y Automotive Survey, CU Direct President Tony Boutelle told Credit Union Journal that 60% of Gen Y prefer to skip the dealership and shop online for a car and 82% do not want to enter the F and I office to close the loan. “Convenience is becoming a much more important factor today for getting the auto loan,” said Boutelle. “Younger members, especially, want to shop online and a large majority want to complete as much documentation as they can before walking into the dealership.”
What is driving the change, surmised Boutelle, is the often drawn-out experience at the auto dealer, where the consumer is aware before setting foot in the door that hours of discussion and paperwork are ahead before they leave with the car. “The tech-savvy younger folk do not want that at all. They want things done faster, easier and with less hassle. This is the trend.”
Credit Union Direct Lending (CUDL), an arm of CU Direct, has been providing credit unions with an online platform that lets members shop via the Web, complete paperwork in advance and make it easier and faster for the dealer to work with the credit union to close the loan. “Our goal at CUDL is to have 90% of the transaction done before the member gets to the dealership.”
Boutelle said there is more that can be done to improve auto shopping convenience, such as selling aftermarket products, including warranties, before the member goes to the car lot. “There is a big change taking place in how people are shopping for cars, and this is something credit unions need to respond to,” he said.
