Though credit unions have thrived in the current auto finance market, CU Direct is warning the 1,100 lenders on its platform to remain cautious as near-term macroeconomic factors — like rising interest rates and a potential downturn — are likely to spark additional risk factors.
“[Lenders] need to increase their rates along with the [Federal Reserve] interest rates to increase their profitability,” Phil DuPree, CU Direct’s chief revenue officer, told Auto Finance Excellence.
Additionally, some strategies can be put in place to keep originations on an upward trend, including creating a consistently competitive program for dealers, membership engagement, and increasing automation to originate loans.
In this episode of The Roadmap, Auto Finance Excellence talks with Phil DuPree, CU Direct’s chief revenue officer, to discover how credit unions and other lenders can improve financing strategies amid the current market and outlines the top three ways to keep originations on an upward trajectory.
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Source : AutoFinanceNews
