Making the Most of Repossessed Vehicles to Market Loans
(Adapted from the May 2010 Credit Union Times)
Credit Unions in Automotive Lending
Credit unions are trusted for auto loans due to strong lending practices and excellent customer service. Auto dealerships prefer them for flexible financing and reliable client treatment. Even with challenges like lower auto sales and strict regulations, credit unions remain leaders in consumer lending.
Adjusting to Economic Challenges
Credit unions face tough decisions to maintain their reputation in a volatile economy. This creates opportunities to innovate and offer new financing solutions.
Discovering a Niche: RepoFinder
After observing credit unions selling vehicles, I began compiling resources to find credit union-owned assets in Utah. This list grew into RepoFinder.com, a nationwide directory for credit union-owned vehicles and real estate. The platform benefits both consumers and credit unions by connecting bargain hunters with available inventory.
Benefits of Buying Repossessed Vehicles
Buying vehicles from credit unions offers two main advantages:
- Trusted Customer Service: Similar to car dealerships.
- Private Seller Experience: Commission-free and pressure-free.
Credit unions can market these vehicles to draw traffic to their websites and loan services.
Selling Repossessed Vehicles Effectively
Credit unions should highlight repossessed vehicles on their websites. A dedicated section can attract buyers and increase loan applications. Include useful resources like:
- Automotive research links
- Loan calculators
- Price guides
- Live chat options
- Auto insurance information
Prominent loan advertisements can guide potential buyers to apply for loans.
Marketing Strategies Without Inventory
Even without repossessions to sell, credit unions can use these pages to promote loans. For example:
- Add a message like, “No vehicles available now. Check back soon.”
- Display loan offers and special rates prominently.
This keeps buyers interested and encourages repeat visits.
Leveraging Free Resources
Credit unions should update their links on directories like RepoFinder to attract buyers. Platforms like Craigslist, Backpage, or eBay can also be used to reach more customers. Always ask buyers how they found your inventory to refine marketing strategies.
Conclusion
Repossessed vehicles can boost loan marketing efforts when used strategically. Credit unions can gain more customers by promoting trust and offering value.