…Are You Capturing the Market?
Experian has reported great news for credit unions hoping to capture more of the auto loan market.
According to Experian’s State of the Automotive Finance Market Q3 2016 Review, credit unions grew their share of the total automotive loan market from 17.6% to 19.6% year-over-year. For new-vehicle loans, credit unions increased penetration 22%, going from 9.9% to 12%.
According to the report, rising interest rates are playing a large part in bolstering the credit union share. Interest rates for the average new-vehicle loan rose from 4.63% to 4.69% year-over-year.
Melinda Zabritski, Experian’s senior director of automotive finance noted that with the cost of vehicles rising along with interest rates, consumers are searching for lower payments. The traditionally lower rates offered by credit unions are a natural solution. As interest rates and vehicle costs continue to rise, it stands to reason that credit unions will remain an attractive option.
Is it Time for Your Next Auto Loan Promotion?
As you gear up for 2017, keep in mind that the first and second quarters tend to net the largest number of auto loans. Consumers are looking at their next shiny new ride or taking advantage of the cost cuts to the 2016 vehicles. Here at HyattWard we are already working on 2017 auto loan promotions for all of our credit union clients. Now is the time to plan!
Promotion Ideas That Get Results
While promoting your interest rates in the branch is one way to get your memberships’ attention, there are many more effective ways to entice them to apply for an auto loan. We’ve helped to craft many successful campaigns surrounding these three marketing tools.
+Pre-approval
Our clients have seen great success offering personalized pre-approvals to Members who qualify. A potential car buyer who is putting off purchasing a new vehicle, might be compelled to take action when they see their name on an offer describing exactly what their monthly payment could be.
+Don’t Overlook Refinancing
At any given time, a very small percentage of members are in the market for a new car, but the majority of your Members are likely currently paying on an auto loan. Don’t forget to include refinancing options with your pre-approval offers. Some of our clients have even specifically reached out to Members with personalized refinancing offers spelling out exactly how much they might save. Who wouldn’t seriously consider the possibility of a lower payment?
+Include Incentives
Standing out from the crowd can also make a difference in your ROI. Consider offering a chance to win a grand prize for every auto loan application. A grand prize such as coveted tickets to a sold-out music festival can generate a lot of attention. Combine these incentives with eye-catching collateral materials featuring catchy copy and you will get your Memberships’ attention. Another popular incentive is partnering with a local dealership to offer specially priced pre-owned vehicles in a Car Sale. Combine a festive atmosphere with the possibility of a great deal and you’ve got a winning combination.
As a credit union professional, none of these are ideas are new to you, but now is the time to get started. Members are increasingly interested in looking to their credit union for their next auto loan or to refinance their current loan.
If you need a set of fresh eyes or your marketing team is buried in other projects, consider working with a full-service marketing agency like HyattWard. We love getting Members in the branch and on the road!
