March 8, 2004


Comments

 
 
 
  • It would be even more interesting to know the comparative auto delinquency and auto charge-off statistics for CUs with and without indirect auto lending programs.
    Anonymous
     
     
     
  • Granted it has been proven that by forming an alliance with dealerships through an indirect program can assist in the growing of the auto loan portfolio through new members/borrowers (the banks have been doing it for years), but the "field of membership" issues can be a deterrent if your charter is restrictive in nature. The dealership will not "jump through hoops" to qualify your members when the community credit unions are easier to deal with. I believe Field of Membership is a critical issue in the development of a successful auto dealer program and needs to be properly adressed in the discussion.
    Anonymous
     
     
     
  • I am reading all of these comments and am asking myself if any research is being done on the objective rebuttals. Thank you.
    Anonymous
     
     
     
  • Prior comments are correct. The article is waaay too simplistic. If we are concerned about the bottom line; then all the other factors must be considered. We do indirect but don't see it in such a clear light. It's work and care.
    Anonymous
     
     
     
  • We have had an indirect program for 10+ years. Our delinquency and C/O on indirect loans is slightly lower than our direct auto loans. A well run indirect program will boast your loans & membership. If you are going to enter this field, you need to change the mindset of the credit union to one where dealers are treated as partners and not enemies.
    Anonymous
     
     
     
  • These facts and statements do not tell the whole story about indirect lending. Relationships with dealers are not that easy to maintain. Facts and figures related to charge offs, fraud, MBI and GAP pricing, and labor intensive audits should also be discussed. Dealers and F and I folks are in these programs for one thing: PROFIT for their cost centers. Thank you.
    Anonymous
     
     
     
  • I am interested in knowing what credit unions are doing to market additional services to new members who joined through their indirect lending program...What has and has not worked for people..and you have to be careful not to have these members refinance at "lobby" rates, which are often lower.
    Anonymous
     
     
     
  • Great Stuff CHIP !!
    Anonymous
     
     
     
  • You need to give a balanced story and include the change in delinquencies & charge-offs related to these indirect loans. We're just suffereing our way OUT of an indirect program we got into about 5 years ago and the Board complains every month about the charge-offs.
    Anonymous
     
     
     
  • This article scratches the surface. Building trustful relationships with dealerships is a difficult task. Some tend to view us as competition or the new lender for those loans that couldn't get approved anywhere else. Relationships with dealers are difficult. But the rewards can be worth it.
    Anonymous
     
     
     
  • This article scratches the surface. Building trustful relationships with dealerships is a difficult task. Some tend to view us as competition or the new lender for those loans that couldn't get approved anywhere else. Relationships with dealers are difficult. But the rewards can be worth it.
    Anonymous
     
     
     
  • Lenders Protection a new company, that has a A rated insurer backing the auto loan default program..Great For indirect lending. New will being Dec. 7th....
    Anonymous
     
     
     
  • Good information. Are there any updates from 2004 numbers?
    Anonymous
     
     
     
 
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