Shut Down Indirect Lending if your Credit Union Isn’t Doing This
Indirect lending has been a critical component to the credit union industries’ domination of the auto lending market. Credit unions with indirect programs have experienced consistent double digit loan growth with a rich supply of new members who may have otherwise financed with a bank or captive lender. But are these relationships profitable? According to a 2023 MarketWatch report, over 53% of auto lending is being done at the dealership. These numbers have many credit unions participating in the indirect market. It’s likely your credit union is a big indirect lender, and there are a few reasons for that. First, lending is the lifeblood of any credit union. Indirect lending provides a steady stream of lending opportunities that the credit union can turn up or down based on need...