Going Direct May Mean More Competition for Lenders

According to CUNA, “69% of credit union auto loans originate through the indirect channel, and only 5% of those indirect members use additional credit union products.” Once the indirect loan has been paid off, it is very difficult for the lender to extend the customer relationship. Any future engagement is with the dealer for service […]

Why Lenders Should Leverage Alternative Data to Assess Credit Risk

Every lender has been in the situation. A new customer with a limited credit history wants a good rate on a first-time auto loan. The numbers are lacking, but the instinct gnaws. Take the risk? Make the deal? In these situations, consider evaluating alternative data to assess credit risk. According to an Experian study fielded […]

Preparing for a Subscription Economy

Rapid changes are taking place in the way people buy things. The U.S. is moving toward a subscription-based economy, driving companies to focus less on individual sales, and more on gaining recurring customers. This trend is seen across industries, in companies like Netflix, Blue Apron, Spotify, Amazon, and now BMW, Mercedes, and Audi. But, how […]

Reduce Risk by Counseling Consumers

Everyone has been in the consumer’s shoes when shopping for a vehicle. And, Everyone has experienced the excitement and relief that comes with knowing that the first loan payment is often not due for 90 days. But, lenders probably make it a priority to begin paying down the auto loan as soon as possible, i.e., […]

Communicating the Value of Refinancing

Once a consumer is locked into a car loan, it’s easy for them to habitually make the monthly payments without further consideration. But sometimes, it pays to hit pause and consider the potential benefits of refinancing an auto loan, for both lender and consumer. The key point is to evaluate and educate. The Fed has […]

Technology’s Impact on the Human Element in Auto Lending

Chatbots. Artificial intelligence. Voice prompts. Phone trees. Digital avatars. Truly, technology is advancing at a rapid pace, especially in the retail automotive lending space. One example is the use of automatic approvals to increase loan volume in the dealership. Will technology sound the death knoll to human interaction in the lending office? Or, will it […]

5 Ways Lenders Should Prepare for Transition Into 2019

It’s the beginning of October and auto dealers are doing the old car/new car shuffle. Current models are moved out of the indoor spotlight and pushed to the part of the lot where they are “priced to sell.” Showy 2019 models are off-loaded from haulers and placed under those coveted spotlights. 2018 inventory exposure is […]

Closing the Relationship Gap Between Millennials and Credit Unions

Millennials are expected to overtake Baby Boomers in population by 2019, reaching 73 million while Baby Boomers decline to 72 million, according to the U.S. Census Bureau. Though their numbers are strong, their financial situations are not. While there are indeed exceptions, millennials are launching their lives later, often strapped with a heavy student loan […]
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