How credit unions can tap into the fast-growing EV market
Credit unions have historically been recognized
as leaders in automotive lending. However, traditional financing approaches
continue to change and significantly impact the auto market. Some consumers are
starting applications or completing their purchase online. More consumers have
become comfortable purchasing online, and its predicted that one
in three buyers will research and buy their next vehicle this way. A J.D.
Power report states that 25-30% of buyers would like to purchase all or
partially online, which jumps to 40% for EV buyers.
Credit unions must be ready to adapt to new car-buying models and address consumer demands EV vehicles. The EV market continues to increase year-over-year as 1.2 million vehicle buyers choose electric in 2023. This, combined with the rise in direct-to-consumer models led by EV retailers like Tesla, has set expectations for a modern and seamless car-buying experience at the point of sale. Credit unions must explore top-of-funnel lending strategies to meet these expectations and stay relevant in the marketplace.
Helping credit unions connect to new lending channels
Origence launched FI Connect to provide top-of-funnel opportunities to credit unions, allowing them to compete where purchases are made, and financing is decided. The company originates the loan, purchases and places the loan with an eligible credit union partner in near real-time.
Last September, Origence announced its partnership with
Tesla, the largest EV manufacturer in the world, to provide top-of-funnel
opportunities to credit unions. Tesla offers point-of-sale financing; however,
this is the first time credit unions will be an option through FI Connect. With
24/7 operations, FI Connect allows credit unions to compete where purchases are
made, and financing is decided. Now, credit unions can compete with...