BY ERIC GAGLIANO
Looking for a way to grow your auto loan portfolio? An automotive pricing platform likeTrueCar® might be the answer. See how Tower Federal Credit Union’s initial rollout of such a service helped the CU capture a significant amount in auto loans last year.
With more and more buyers, especially Millennials, intent on taking the car buying process as far as possible online before walking into the showroom, the value of an automotive pricing platform should not be overlooked. It provides credit unions with a proven way to capitalize on this evolving approach to car buying.
Tower Federal Credit Union, the largest federal credit union in Maryland by asset size at nearly $2.8 billion in assets and with 137,000 members, started working with such a platform, TrueCar, in late 2014. Since then, the CU has averaged about 85 auto loans per month. The car buying service appears on its website as Tower Car Buying Service, powered by TrueCar, and in the year since its launch, Tower has funded over $22 million through the program,according to Jenny Vipperman, Vice President of Consumer Lending.
“Tower’s focus is member service, and with TrueCar we can provide members with an easy and convenient way to research and choose their next vehicle online,” explains Vipperman. Through its relationship with Frost Financial, Tower Federal Credit Union gained access to the program and branded it Tower Car Buying Service, powered by TrueCar. As of today, new auto loans account for roughly 16 percent of Tower’s total loan portfolio.
TrueCar: A look under the hood
The service is designed to give credit unions a way to provide a transparent and hassle-free car buying experience for their members. Further, users of TrueCar can access special purchase incentives and let dealers know the car they are interested in by choosing the exact options, color and features they want.