There’s something about a credit union. Known for their local presence and ability to provide a better, more-personalized banking experience, credit unions are well-positioned to provide a higher level of service while offering most of the same conveniences as a major retail bank.
Just like credit unions, automotive dealerships play a pivotal role in their community. Dealerships provide employment opportunities, give back to the community and have a deeper connection with the customer due to their being the last, physical mile in the vehicle purchasing cycle.
“Dealerships that embrace credit union relationships, and who by culture are active in the community, position themselves as the businesses this large group of consumers wants to engage,” CU Direct Lending (CUDL), a lending group that works with credit unions and dealerships, states in in their white paper: Technology, Relationships Spurring Dealers’ Growth in Credit Union Lending.
Partnering with a credit union opens the doors to increased revenue and opportunity. Is your dealership taking advantage of a credit union’s local presence?
More Than Lending
Bill Rusch, Finance Director at Raymond Chevrolet, offers a surprising statistic regarding partnering with CUDirect: “One hundred percent of deals through CUDL will include at least one additional product, and the majority will consist of two to three products.” While not all transactions between a dealership and a credit union will boast this success rate, there are positive revenue implications for all parties, including the more satisfied customer.
Imagine harnessing the power of trust with a credit union to help grow revenue. When you establish a relationship with a local credit union that will endorse you, or better yet, refer you and your business, the benefits are monumental. Under the glow of a credit union, a dealership has the ability to generate more after-sales and service revenue dollars.
“Buyers quickly see the credit union advantage and thus more likely to also buy GAP, road hazard or a service contract.” He notes, “That makes a difference for us – and it’s better for the member customers too,” Rusch states.
Credit union members put a great deal of faith in their financial institution, so if your dealership makes their list of those they work with, your dealership can see increased revenue and higher customer satisfaction.
The report from CUDL adds, “Credit unions carry a halo effect that helps dealers build consumer trust, confidence and endorsement. No other lending alternative has this affect and benefit to dealers.”
In spite of a decrease in automotive sales, credit unions saw a significant boost in lending. CUDL provided over one million loans making it the highest ranked auto lender followed by Capital One Auto Finance (940,070 auto loans).
No longer a product-centric world, the customer experience is what is helping drive satisfaction, retention and revenue. From that point of view, mapping the customer experience and discovering how the various stakeholders and players can impact each other positively can lead to measurable success. Credit unions can help dealerships provide the level of confidence and convenience that makes the customer-centric world go-round.