Langley Federal Credit Union plans to launch its indirect auto lending subsidiary, Langley Lending Services, in a few weeks — on the heels of the lender’s expansion into Maryland, North Carolina and Virginia.
Langley Financial Services “will be devoted to helping smaller credit unions get their footing in the indirect auto business,” Jose Iregui, vice president of consumer lending at Langley, told Auto Finance News.
Newport News, Va.-based Langley FCU was ranked the fourth-largest auto lender by volume in the state in March, marking the credit union’s 10th consecutive quarter in Virginia’s top four, according to an AFN analysis of AutoCount data.
In March, Langley FCU’s number of loans and leases from car dealerships increased 43% year over year to 2,451, according to AutoCount. By comparison, Toyota Financial Services was the largest auto lender in Virginia in March with a total of 3,310 loans and leases, followed by Navy Federal Credit Union with 2,923 and Capital One Auto Finance with 2,761.
Partnerships with nearly 700 dealers
Langley FCU’s growth is attributed to the lender’s strategic partnerships with nearly 700 dealers and dealer representatives with “boots on the ground” in Richmond and Roanoke, Va.; Charlotte, N.C., and Maryland, as well as a member-first mentality, Iregui said, noting that growth has come about organically through the company’s investment in its partners and members.
“When I see fourth in the state, I say, ‘Yeah that’s really kind of cool’ but that’s not the goal, it’s just the consequence of trying to grow with scalability,” he said. “It’s not all about the number of dealers, but the quality of the dealer that we do business with.”
In choosing dealer partners, Langley FCU monitors engagement and performance, and invests in strong dealer representatives who educate the credit union on market behavior regularly, Iregui added.
Langley FCU’s growth continues to trend upward as the lender expands its footprint through new dealer partners in additional states and focuses on member relationships rather than on competitive rates, he said.
“We don’t necessarily have the lowest rates,” Iregui said. “We’re not rate-chasers, but we like to offer the best service.
“One of the things that we don’t want to do is grow just for the sake of growing. We need to make sure that we’re serving the membership in the best possible way.”
Langley FCU’s direct and indirect auto lending portfolios totaled $1.8 billion as of May 23, Iregui said, adding that nearly 15% of its 334,000 members have auto loans with the credit union.
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