The National Credit Union Foundation has launched a resource for members who turn to so-called predatory and other non-traditional lenders for auto financing.

The Non-Prime Auto Loan Toolkit is available to credit unions through the NCUF's REAL Solutions program. The kit provides underwriting guidelines, techniques to mitigate risks, pricing guides, credit union examples and a loan portfolio management guide. It also suggests Enterprise Car Sales as one option for vehicles.

The estimated size of the non-prime auto market ranges from $100 billion to $200 billion, according to Nancy Pierce, field coach for the NCUF's REAL Solutions program.

“There is tremendous opportunity for credit unions to reach out to this market that has been mis-served by predatory and non-traditional lenders,” Pierce said. “Yet, as credit unions put more non-prime borrowers into automobiles, they need to do so prudently and with clear understanding of the increased risks they are undertaking.”

Citing data from the Annie E. Casey Foundation, the NCUF said 88% of American workers drive to work and two-thirds of jobs are located in suburbs. Relying on public transportation, if available, can double commute time while not having a car is the single biggest barrier to escaping poverty, according to the data.

The toolkit is available to credit unions free of charge at realsolutions.coop.