Increasing Credit Union Auto Loan Counts amid Decreasing Vehicle Inventory
The Covid-19 pandemic has led to supply chain shortages across the globe, and the automotive industry is no exception. Vehicle demand has sharply increased from the early days of the pandemic, but the supply of semiconductor chips needed to manufacture new vehicles has been diminished, halting the production of new vehicles, and leaving many dealerships with empty lots. Even pre-owned cars are becoming increasingly difficult to acquire as large dealer groups and rental agencies drive up bids in online auctions, pricing many dealers out of the market.
The inventory shortage is projected to continue into 2023 and will have a big impact on auto loan volume. Having a well-established indirect lending program has become key for credit unions to achieve growth in a highly competitive market. Borrowers are more inclined to take advantage of point-of-sale financing at the dealership when inventory is scarce, putting the dealer in control of where the loan is sent.
Dealerships have many options when choosing an indirect financing source for their customers. It can be difficult for smaller institutions to compete against national lenders who have the resources to offer extremely low rates, fast approvals and electronic contracting, but credit unions have a unique advantage to work together to provide additional value to borrowers and dealerships.
Partnering with Keystone Lending Alliance will put your credit union at the top of the list for indirect auto lending. Dealerships submit loans to us directly through DealerTrack and Route One, the same platform their captive lenders use, so we don’t miss an application. Our extended underwriting hours, fast approvals, electronic contracting and market-driven rates level the playing field against national lenders, without compromising the exceptional service and community-focused nature of credit unions.
Our credit union partners have access to our ever-growing network of 382 dealers, increasing auto loan opportunities and providing a smoother transaction for members as they shop for their next vehicle. We make routine visits to our dealerships to train their staff on how to utilize the program and stay in the forefront of their minds when selecting lenders. We maintain strong relationships with dealerships by rewarding them for sending us applications from our Credit Union Members and ones that meet our program guidelines. Our underwriters, loan processors, and sales representatives are experts with years of experience in the business. These attributes have enabled us to keep our credit union portfolios strong and performing well with a strong yield. We offer debt waiver products to borrowers, further protecting our credit unions and their members in the midst of these uncertain times.
Whether you’re looking to try indirect auto lending for the first time, or simply want to grow your current program, now is the time to partner with our 31 credit unions across PA to stay one step ahead of the competition and increase loans amid decreasing vehicle inventory.
Keystone Lending Alliance provides credit unions with industry leading technology, digital underwriting and funding, and extended operating hours with no upfront costs. We offer a suite of customizable products and services and will help you decide which options provide the most benefits for your credit union. If you would like to learn more about our proven credit union solutions, give us a call at 724-934-3394 or email us at firstname.lastname@example.org. Our management team would love to discuss these options with you to see if they would be a good fit for your credit union.
Keystone Lending Alliance, LLC
6021 Wallace Road Ext. Suite 100
Wexford, PA 15090
724-934-3394 (p) | 724-934-3389 (f)