What CU Insiders Say is Driving Auto Lending
July 8, 2015 12:00 PM
The auto loan market is strong and shows no signs of slowing down, according to credit unions across the country.
Kelli Kinney, centralized lending manager, America's CU, DuPont, Wash.
"Auto lending is going great and now we are going into our busy summer months. We are getting a nice share of new car loans because we are out in the dealerships. That is the key: being available and having good communications with the dealerships."
Julie Lind, VP-consumer lending, WSECU, Olympia, Wash.
"Lending is going really good. Our biggest challenge is our loan-to-share ratio is at 93%. This is making us have to manage our relationships with dealers. They want to know why we are not as aggressive as we have been the last two years. We are looking to participate out loans. We have a pre-approval promotion scheduled for July."
Carl Roer, VP and chief lending officer, Sound CU, Tacoma, Wash.
"Our car lending program has been really strong - both direct and indirect. Indirect has been hitting $15 million per month recently, the highest averages we have ever had. It helps that the Pacific Northwest economy is strong. Direct lending is doing well. Our best direct promotion is offering to refi loans. We are getting both members and non-members to bring their loans to Sound in response to pre-approval letters. The incentive is 2% cash back, with a maximum of $500. The loan has to stay with us for a year for them to qualify for the cash back. This has been very powerful."
Jesse Crenshaw, director of lending, Altier CU, Tempe, Ariz.
"We are going so well with indirect we are near our cap so we have had to scale back. But we still have room to grow on the direct side. We have a new promotion that is paying members 1%, rather than paying that to the dealers. The competition in the greater Phoenix area is fierce. It is like chess - everyone is watching the moves everyone else is making."
Steve Perez, loan production manager, Altura CU, Riverside, Calif.
"We are doing very well. In March we did $20 million in auto loans - $5 million indirect and $15 million direct. We do four campaigns each year. In March we sent 18,100 postcards promoting low interest rates. We have a May/June promotion that we are in the middle of right now, plus one in August and another in October. We also work with Auto Expert in putting on three car sales each year."
Misheline Kim, consumer lending manager, Kinecta CU, Manhattan Beach, Calif.
"Auto lending is going wonderfully. In April we did $58 million. We have a lot of relationships with brokers and dealerships. We keep our niche because we do a quick turnaround. During the holidays we do promotions with higher flats."
