Car Ownership, Car Rental, Handshake, Contract, Car

Car vendors accruing growing share of auto loan market

A vending machine for cars? Really? It’s here, and a retailer called Carvana is providing it to an ever-growing number of consumers. That sort of competition is a call for credit unions to step up their lending game with members, providing them better rates and putting them in the auto they want.

While marketing for the online dealer is pushing the appeal, it’s the hands-on, “hearts-in” approach a credit union loan officer can provide that should bring over even the millennial and Gen Z buyers.

An article in Financial Brand studies the threat of seller/lender Carvana, saying, “The company — which launched as an independent concern in 2012 and which went public in 2017 — is something both local car dealers and lenders should be watching while considering the future of auto lending.

According to the article, “While a number of internet platforms exist in the highly fragmented car sales space, Carvana has strong appeal to Millennials and others who love the idea of marrying car sales and ecommerce.”

Data shows auto loan balances are at record highs, and credit unions need to have their share of those loans on the books. Read the full article here.

LEVERAGE offers auto loan opportunities through partner Credit Union Loan Source (CULS) and auto solutions through PAR. Click here for details.

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The League of Southeastern Credit Unions & Affiliates represents 302 credit unions in Alabama, Florida and Georgia, with a combined total of $175 billion in assets and more than 11.6 million members. LSCU & Affiliates provides legislative and regulatory advocacy; education and training; cooperative initiatives (including financial education outreach); public messaging; information services; and business solutions.

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