Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

CU System
CUs compete with dealers on auto financing
BAKERSFIELD, Calif. (4/20/10)--Credit unions “must go toe-to-toe with automobile manufacturers hungry for customers” when offering auto loans to credit union members, according to a California newspaper. However, credit unions can emphasize their member service advantage. The Bakersfield Californian reported Friday that competition is tough for auto financing between credit unions and auto manufacturers. Auto manufacturers can offer financing at 0% interest because they can make money in other ways--while credit unions cannot. It’s hard to compete with zero percent interest, said Doug Kileen, president/CEO of Safe 1 CU, Bakersfield. Steve Renock, president/CEO of Kern Schools FCU, said his credit union hasn’t changed its strategies in auto financing but recognized that there is more competition from manufacturers’ captive finance companies. While competition may be tight, credit unions have an advantage over manufacturers. Credit unions can respond to their members’ needs--like extend the term of a loan beyond what manufacturers offer, said Linda Crosby, senior vice president of financial services at Kern FCU, Bakersfield. Credit unions need to speak out about the potential drawbacks of manufacturers’ low interest deals--which can mean shorter loan terms and bigger monthly payments, added Bill Meyer, communicators for CUDL, an Ontario, Calif.-based indirect auto lender for credit unions. The deals offered by captive finance companies also may only be available to those with good credit, Meyer added.
Other Resources

RSS print
News Now LiveWire
Leagues have until Friday, April 25, to enter into @CUNA 's Blockbuster Awards. The original deadline was April 18. http://t.co/rnJYm76N8U
12 hours ago
Found out how members are saving at the ballpark with the help of their #creditunions tomorrow in #NewsNow #CUNA
15 hours ago
First annual meeting of @Cornerstone_CUL under way: http://t.co/Xp710hzRC3
16 hours ago
.@fileneresearch says #creditunions can educate young adults in the ways of retirement planning #NewsNow #CUNA http://t.co/vXToTtBVA2
16 hours ago
.@Cornerstone_CUL #credit unions lead the way in 1st QTR auto sales http://t.co/ZiSsE5HIFP
16 hours ago