Dover Federal Credit Union is seeing an uptick in loan volume from its 38 dealer partners after lowering rates on 84-month auto loans recently, said Indirect Lending Manager Brad Fielder.
Some lenders are getting away from 84-month terms, which is opening the door for more business opportunity for Dover, Fielder explained. “We want to deepen the opportunity for low rate, long-term loans because it does help our members with lower payments, but it’s also larger loan volume for Dover Federal,” he said.
Many dealers will have a better opportunity to find financing for a $55,000 loan, for example, if they can get it approved at 84 months as opposed to 72 months, he said. “By lowering the rate, they are sending us more deals, and we are starting to see our loan volume go higher,” he added.
