HOUSTON (7/7/09)--Auto Financial Group (AFG), a Houston-based online provider of residual-based financing products for credit unions, announced Friday that it signed an agreement with Credit Union Lending Systems (CULS). Under the agreement, CULS credit unions will offer AFG’s DrivingSense to their members. DrivingSense is an auto financing product that offers the lease-like benefits of a balloon loan to credit unions and their members. It allows credit unions to “build” a vehicle for their members; compare payment terms with conventional loans; and offer their members lower payments--often as much as 40% lower, as well as flexible two- to six-year terms, actual ownership of the vehicle and several end-of-term options (Business Wire July 3). DrivingSense removes the financial risk to the credit union by guaranteeing the predetermined residual value of the vehicle through third-party insurance, and handling the vehicle’s disposition at the end of the term, said the companies. AFG is paid one administration fee for each DrivingSense loan, while the credit union earns all the interest. Credit unions are protected while building a relationship with their member, they said. CULS, based in St. Louis, is a service offered exclusively to credit union members. CULS and credit unions have teamed up with hundreds of auto, boat, motorcycle and recreational-vehicle dealers to provide credit union financing at the dealership.