GrooveCar's Indirect Auto Lending Increased by 36% in 2017
New York Metro region continues to grow and outpace forecasts
HAUPPAUGE, N.Y. - March 22, 2018 - PRLog -- GrooveCar, a Fusion dba, reports the indirect program for credit unions showed an unprecedented 36% increase in auto loans for partners in 2017, over YTD 2016. The nation's leading provider of auto loan growth solutions reports this is the highest loan growth in a one-year period, for partners on the indirect program, since it was founded in 1999. "The numbers speak for themselves, we continue to experience sustained auto loan growth fueled by members' increased desire to obtain a new vehicle. GrooveCar is the mechanism that brings all the parties together with its online auto buying platform, dealer network solutions and offline support services," comments Frank Rinaudo, Senior VP of GrooveCar.
Nationwide, new vehicle sales reached 17.2 million, down just 1.8% compared to 2016. Used vehicles, sold through new car dealers, are projected to increase from 15.1 million in 2017, to 15.3 in 2018. Credit unions, have traditionally excelled in the pre-owned lending space. The remainder of 2018 will have expanded opportunities in that area. In the New York region, new car sales remain a solid performer for credit union portfolio growth. "In addition to traditional financing, we are seeing a continued interest in leasing. Nearly 70 percent of new vehicle loans are structured through a lease. Vehicle financing is performing extremely well here, members are buying vehicles through their credit unions in record numbers," states Rinaudo. Overall, credit unions nationwide experienced 20 percent in auto loan growth in 2017, however, GrooveCar realized a 36 percent increase through its credit union partners.
One of GrooveCar's best performing indirect markets is the New York metro region. Credit union members total over one million strong and nearly 90 percent of franchise dealerships participate in the program. "GrooveCar has been a part of the fabric of car buying for nearly two decades, credit unions, members and dealerships look to our program to provide innovative ways to help drive business. The company was originated in this market almost twenty years ago, we are from this region, so it makes sense that our programs work," states Rinaudo.
As competition heats up, credit unions will need to distinguish themselves from their banking counterparts in 2018. One of the trends seen this year is offering incentives to consumers. The GrooveCar Direct auto buying platform provides credit unions with customized landing pages, within the platform to do just that. A section of the website will contain promotions, should the credit union wish to deploy any special offers or work with preferred dealers in the area to close more loans. "Our sales and marketing department works very closely with all parties to ensure greater communications. Our member service representatives, work with members on all aspects of purchasing a new or pre-owned vehicle with their credit union, from pre-approvals to details needed from the dealership. Our program makes sure members have a seamless transaction online and off," explains Rinaudo.
Demand is still very high, despite a slight drop in vehicle sales over 2016 numbers, anytime sales are over 16 million, is considered a great year. GrooveCar is launching new programs to assist credit unions with getting the message out to members while taking advantage of all opportunities. Helping credit unions focus on the entire transaction and the member's buying journey, is just one of the many reasons credit unions turn to this program to achieve success.
Founded in 1999, GrooveCar is a Fusion dba, providing automotive loan growth solutions to credit unions nationwide. The platform serves credit union members, as well as the general-public, with the most informative and user-friendly auto search engine. The program is combined with an expansive dealership network surpassing five million vehicles, GrooveCar facilitates the entire car buying process, including shopping, researching, buying, leasing, and financing. Through the national auto-leasing program CU Xpress Lease, credit unions can take advantage of leasing opportunities in the new and pre-owned vehicle market. CU Xpress is the leading credit union lease program in the nation. Additional information on GrooveCar or CU Xpress Lease may be found at http://www.groovecarinc.com.
Director of Public Relations