Military lender USAA hopes to double the volume of members taking advantage of its car-buying service in 2015, said Steve Harrison, executive director of USAA Auto Circle. The service connects members with the lender before they enter a dealership, allowing them to research pricing, arrange financing, and purchase vehicles online or from a mobile device.
“Last year we sold about 200,000 vehicles through this program,” Harrison told Auto Finance News. “Our goal this year is to double that, so it’s a very ambitious goal.” Harrison said the program is beneficial not just for the bank’s members, but for USAA, as well. “We find that when members use the program, they are twice as likely to finance with USAA and more likely to be retained,” he said. “They have wonderful things to say about the program, and customer satisfaction is through the roof. So we want more of that.”
One way the lender is trying to achieve its growth goal is through lower interest rates. Although USAA financing is optional for Auto Circle purchases, last year the bank debuted discounted rates to members who bought vehicles through the program.
“We’re always looking out for the financial security of our members, so sometimes that means taking [a non-USAA loan] with the dealer, and that’s fine if that’s the best thing for the member,” Harrison said. “But if you look at people who use the program, they typically are engaging with us early.”
