Auto Loan Pricing Strategies

Risk-based pricing versus relationship-based pricing; learn the differences and the effectiveness of each in today's competitive market.

 
 

Credit unions should evaluate the effectiveness of their pricing strategies in light of today's competitive market.

Risk-based pricing - in which the interest rate is determined by the member's credit score - is used by the majority of credit unions to price auto loans today. Below are the average range of rates for a new auto loan, as reported by respondents to Callahan's Auto Lending survey conducted this year:

Risk-Based Pricing

 

 

 

Aug. 19, 2002


Comments

 
 
 
  • A May 2001 survey of loan pricing is useless considering the course of loan rates over the last 12 months.
    Anonymous