Lifetime Auto Loan
Prepared by i3 – The Edge
Bethpage Federal Credit Union
Kemba Financial Credit Union
Purdue Employees Federal Credit Union
Smart Financial Credit Union
Motorola Employees Credit Union
SAFE Credit Union
Orange County Teachers Federal Credit Union
Credit unions need to differentiate themselves with innovative loan products in order to
compete in the crowded and increasingly aggressive auto lending marketplace. Members
need a convenient way to finance their vehicles with the credit union.
Auto lending has not changed appreciably in the past 20 years, with the exception of
indirect lending and the ability to underwrite loans quickly through automation. In fact, it
remains a commodity business with “me too” products offered by a crowded field including
banks and the auto manufacturers’ captive finance companies. Vehicle loans still comprise
a significant percentage of credit unions’ loan portfolios and are considered a core
product. However, credit unions have been struggling to maintain their grip on this core.
Credit unions need an innovative, cost-effective and efficient auto loan product that meets
consumers’ increasing demands for convenience.
The Lifetime Auto Loan is that kind of innovative product. After completing an initial
application, the credit union member may purchase and finance vehicles throughout their
lifetime without ever having to complete another application or come into the credit union.
It consists of four components:
• An open-end lending agreement,
• A power of attorney that enables the Credit Union to secure the collateral without
requiring the member to come into the Credit Union,
• A pre-approved loan check mailed at six month intervals beginning 18 months after
the last auto loan advance,
• Ongoing member communication and education via