Pentagon Federal Credit Union said it is teaming up with CU Direct to make the car purchasing process easier and faster for members by giving them access to CU Direct's nationwide auto dealership network.
“The landscape of lending is changing and credit unions like PenFed can see the potential for auto lending growth in front of them,” Tony Boutelle, president/CEO of CU Direct, an Ontario, Calif.-based CUSO, said. “Auto loans are leading portfolio growth for many credit unions across the nation.
The partnership will allow PenFed, an Alexandria, Va.-based credit union with $19.4 billion in assets, to access CU Direct's network of more than 12,500 dealerships across the county in an effort to expand both membership and loan volume.
Credit unions more than doubled their auto lending in the past decade. In 2015, CU Direct-affiliated credit unions generated $26 billion in new auto loans.
“Growth is a key part of the equation when it comes to PenFed's ability to consistently deliver low-cost financing for its members,” James Schenck, president/CEO of PenFed, said.
Boutelle's organization offers credit unions a variety of services that use technology to help speed up lending in several areas, including auto loans. For instance, it allows credit unions to offer branded shopping services to members who are considering a vehicle purchase. It also offers tools that allow credit unions to follow up with members who are also shopping for a new home or credit card.
PenFed said it plans to offer a unique, risk-adjusted price approach to auto financing. The credit union does not require money down on any vehicle and does not increase the interest rate based on the model year.
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
