First Financial Credit Union is taking steps to keep members from being flipped for financing at the dealership.

As often happens with credit unions or other direct lenders, consumers arrange their own financing then are swayed at the dealership to use another lender — one arranged by the dealer.

At West Covina, Calif.-based First Financial, only 15% to 20% of members approved for auto loans ended up financing with the credit union. Now that ratio is up as high as 90%, said President and CEO Carlton Musmann, thanks to a new auto-buying service.

The program, called Personal Auto Locating Management — or PALM, for short — matches members with appropriate vehicles. One of the perks of the program, according to the credit union, is that consumers bypass any dealer markups. Another plus: Members can have their cars delivered to their local First Financial branch, or even to their homes.

In its first month, PALM facilitated 30 vehicle sales. Two weeks ago, the credit union held an auto sales event tied to PALM that resulted in nearly 50 cars sold and $500,000 in auto loans funded.

Certainly, auto-buying services like First Financial’s are nothing new. Dozens of credit unions nationwide — from Bay Federal Credit Union (Capitola, Calif.) to Community First Credit Union (Green Bay, Wisc.) to Truliant Federal Credit Union (Winston-Salem, N.C.) — use them. What remains to be seen is whether credit unions will tout these programs more aggressively, especially as auto sales volume starts to pick up. Might non-credit-union lenders be in for some tougher competition?