U Drive Acceptance Corp. is making strides to grow its new indirect-only portfolio — including the launch of auto decisioning — following the transition away from its buy-here, pay-here model, said Director of Originations Neil Evans.
U Drive Acceptance launched auto decisioning on CU Direct’s CUDL platform on Nov. 22, Evans told Auto Finance News. Now, 25% of its applications are auto-approved and about 5% are auto-declined. “The other 70% will have to be done manually,” he said, as the lender specializes in subprime auto loans.
Auto decisioning is “huge for us,” in terms of getting consistent results within the portfolio, Evans said.
Additionally, U Drive joined CUDL’s Pass-Through Finance Program on Dec. 12. When a dealership submits a credit application to a credit union and the loan is declined, the Pass-Through Finance Program allows that application to be automatically sent to UDAC for approval, Evans explained. “That’s going to help us tremendously, from a supply-and-demand curve, as well.”
Sioux City, Iowa-based U Drive began the trek to becoming an indirect lender in 2014, and has since been dialing back its BHPH loans. The company “took birth” in a back office of Big Deal Auto Plaza, but moved into its own office and celebrated a grand opening on Dec. 5.
U Drive Acceptance has originated 185 indirect loans through November, up from 177 indirect loans in all of 2015. The lender originates loans for more than 70 dealers.
