Best Practices: Strengthening credit union/dealer relations
for mutual success.
The Credit Union of America and Scholfield Honda case study examines the keys to developing and maintaining a successful credit union-auto dealer partnership in today’s automotive lending landscape. By looking at their partnership from their separate perspectives, the case study reveals how the credit union and the dealer have forged a vital relationship that has resulted in continued growth for each organization, and sheds valuable insight to the challenges, the solutions and the benefits of their partnership. more ›
Reduce expenses and grow auto lending portfolio.
Citadel operated a point-of-purchase lending CUSO for nearly thirteen years. After closing the CUSO, Citadel was challenged to make its auto lending program more profitable. It had been using DealerTrack as its indirect lending provider and accrued $30,000 in monthly expenses from application fees, dealer “shotgunning” and paper that did not meet the credit union’s lending criteria. Furthermore, only 23% of the indirect loan applications received was actually funded. Citadel needed a solution that would cost less and allow the credit union to set forth tighter lending parameters for its dealers. During its pursuit to find a solution that would accomplish these goals, the credit union was also seeking solutions that would provide more auto buying services for its members to expand their auto loan portfolio. more ›
Digital FCU has become more profitable since implementing Decision Manager.
Increase underwriting efficiency and compliance.
DCU determined that its automated underwriting process was substandard and antiquated. Senior level loan officers were reviewing every single application, making it difficult to provide consistent loan decisions. Subsequently, approvals were slow, even for standout members with top-tier credit. more ›
Erie Federal’s indirect lending grew at a faster rate than in-house loans and grew new membership by 23% after implementing AutoSMART.
Increase loan volume and add new members.
In addition to a desire to increase auto loan volume, as well as add new members, Erie Federal knew that only booking loans in-house meant it was losing substantial business to dealer-originated loans. The credit union sought to add a new member service that would enable members to research vehicles, then apply for loans and get approval prior to visiting the dealership.
Erie Federal also looked for a service that both promoted auto lending as an added benefit to members and enabled the credit union to tap into members’ auto buying process earlier and capture more member loan opportunities. more ›