7 Ways to Grow Your Credit Union’s Direct Auto Loans

Arrows Going Up Road - Growing Direct Auto Loans at Credit Union
(Last Updated On: September 17, 2023)

Everyone loves growing car loans at credit unions. With low rates, affordable protection products, like GAP and Vehicle Service Contracts, plus friendly staff, all your driving members should finance their car at your credit union.

Auto lending is a tool to empower members, but it’s also a major profit center for your credit union. Ensuring it maintains healthy growth is crucial.

Get the full story: 7 Steps to Driving Profitable Direct Auto Loans 

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Discover how your credit union fits into the journey…beyond just the loan. Watch the recording of our Car Buyer’s Journey Webinar.

1. Car Buying Service for Credit Unions

Nearly every car buyer goes to a third-party car buying platform, dealer website or manufacturer’s financing website, and 78% visited at least 2 car buying services online. All guide visitors to their financing partners and not your credit union. 

A great car buying service for credit unions ensures they get the expected experience and your credit union also knows they’re in the market for new wheels. 87% of consumers research financing before their purchase, with more than 30% of most generational groups getting pre-approved online.

Visiting your credit union’s website means yours will be the first application they submit.

2. Reward the Relationship

Help members win for all their financial goals!

A direct auto loan represents a member who may be open to expanding the relationship when your credit union offers the right value. We believe Value-Added Checking and improved credit card rewards programs are strong candidates to provide great value.

Members have goals, challenges, and needs for your credit union to serve!

3. Shift to Universal Bankers

If a member applies for an auto loan, virtually or in-person, help them accomplish their initial goal and more. Show how else your credit union can help make their lives easier with an auto loan refinance or no-fee credit card balance transfer.

Here’s why we see Universal Bankers as revolutionary to member experience.

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4. Streamline Online Experience

More members visit your website and mobile app than walk into your branches, so be sure they’re optimized. That means:

  • Feature your car buying service prominently without any ‘speedbumps’
  • Enable quick refinancing on members’ existing loans. Partner with fintechs, like WithClutch, which make it feel like magic and bring all the data into your LOS
  • Offer a truly simple loan application; complicated steps means far too many are abandoned

5. Discounts & Incentives

Red Balloons with Percent
What rates were. What rates are with your promotion. Hold on tight!

Everyone loves a sale. While promoting auto loans strictly on lowest rate doesn’t differentiate the credit union, it can be part of a mission-focused campaign. Drive member engagement by linking the rate discount to relationship rewards.

If your credit union is concerned about cutting into revenue, keep in mind that our TrueCar online car buying service offers money toward these types of programs.

Reach members when they’re in-market & get strategic about direct auto lending. Grow revenues and accelerate the mission by educating on protection products early in their car buying journey.

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6. Sell Insurance and Vehicle Service Contracts Online

Ancillary products bring in additional revenue and protect your members from unexpected costs that can lead to financial ruin. We consider them essential to financial empowerment.

Don’t ignore them until loan closing when they are easily dismissed. Promote your protection products throughout members’ car research and loan process. Educating is selling. Selling is serving. Serving is protecting.

Consider using GreenProfit Solutions’ free, white-labeled videos to provide useful information to members, so your potential borrower understands the value of GAP and more before the loan closing process.

7. Refinance the Modern Way

Help members save time and money when you offer auto loan refinancing for your credit union members. Technology has streamlined this process into a no brainer.

WithClutch Auto Loan Refinancing

GreenProfit Solutions’ partner, WithClutch, offers a 3-click solution to display outstanding loans a member has at other institutions. And not just auto loans. All sorts of loans, even credit cards! It’s fast, mobile-focused, and, best of all, puts all necessary documents into your LOS when the member asks to refinance.

The WithClutch demo only a few minutes (we’ll allow time for questions!):

Drive Loan Growth With Direct Auto Loans

Pair old-fashioned member service with tech to make life easier for everyone. Promote your offerings continuously while providing honest education. Get more profitable direct auto loans.

And of course, Subscribe to the Learning Library to keep these ideas flowing and the research simple!

Image credits: Road arrows by ar130405. Trophies by Andrzej Rembowski. Balloons by Stefan Schweihofer. All from Pixabay.

Joe Winn - CU Geek

Blogger. Speaker. Futurist. Part-time Jedi.

Dedicated to helping your credit union, large or small, deliver mission-focused financial empowerment to your members. And make a positive impact on your community while you’re at it.