Get Proactive with Auto Loans

Credit unions offer a variety of lending services for members, including auto loans. To optimize auto loan penetration among members, credit unions need to be proactive, targeting potential opportunities and positioning themselves appropriately in the loan process funnel. Simply stated, the more a credit union can get in front of members needing auto loans and provide them the best options available, the better chance the credit union has to secure the loan. Why is this important? CUNA reports only 19% of credit union members have a new auto loan with their credit union. In addition, new auto loan growth decreased 16.5% in 2010.

The Credit Union Member Discount from GM through the Invest in America (IIA) program allows credit unions to provide members with a valuable discount and an opportunity to increase their auto loan volume. Through the LoveMyCreditUnion.org website, IIA provides credit unions the tools to get in front of members seeking auto loans. In the Partner Center of the website, credit unions not only have access to many free marketing materials, but also have the ability to access contact information for members who have requested an Authorization Code for the Credit Union Member Discount from GM. This data is updated weekly and invaluable information so credit unions know who to contact to secure their auto loan prior to the member going to the dealer.

GM is very supportive of credit union financing and wants to assist credit unions in securing auto loans up front. Mark Degnan, manager of GM incentives, feels “Providing customers with financing options is important to General Motors. Credit Unions have a trusted relationship with their members and we are delighted to complement that well-earned status with the Credit Union Member Discount from GM.” In fact, GM went to great lengths to include a link on the GM microsite that takes a member to their credit union’s loan application page or other designated loan section of the credit union’s website. If you haven’t taken advantage of this opportunity by providing Invest in America your designated link, please send it to us at IIAloanapplication@cusolutionsgroup.com.

Don’t be discouraged by sub vented rates offered by captive lenders. While it seems like a great offer, low rate financing offered by captives is usually available only to well qualified consumers on select models only. Generally, these are in lieu of consumer cash and incentives. So, members have the option of the reduced rate or consumer cash incentive. However, credit unions can offer their traditional low rates and take advantage of the consumer cash resulting in greater member savings.

By taking advantage of the Invest in America program offered by the CU Solutions Group, credit unions can stay in front of their members auto loan needs and increase their auto loan volume.

Related Services: Invest in America, Credit Union Member Discount from GM