There is no time like the present to increase your auto loan business. Unlike real estate loans we don’t hold on to an auto loan for thirty years. It’s quick interest income. With prime at an all-time low and mortgage rates dropping to practically nothing auto loans give us a higher rate of interest for a shorter term. Auto loans are cheap to acquire. There are no closing costs, appraisal fees, and attorney fees. When done properly, you get more then a new loan; you will get an entire relationship with that member.
Indirect lending, if you are not already on board with all your local dealers, maybe it’s time to consider it. The dealers do the majority of the work and send it to your underwriter. You either take it or don’t. The potential is huge and not an option to ignore. If you are going to pursue this option there are a couple of things you should know. Plan ahead of time, “sweet talking” a car dealership can take time. Think about what they do all day, sell. You want to go in there with your best salesperson to do the negotiating. First visit just get to know them and leave them with something to remember you by, other than just a business card. Once you have established the relationship and the papers are signed don’t stop there. Make sure to stop by a couple times a month with some treats for the salespeople; the more they like you, the more loans they will send you.
Mine your current membership. Pull your reports. Who currently has an auto loan that is going to be paid off in the next year? Who has an auto loan that has been paid off? Who has a need for an auto loan? Once you gather that information, how are you going to use it? The most successful options will be direct mail, email marketing, and calling them. The best thing you can do to retain and build your accounts per member is communicate with them more. They want to know what is best for them, and appreciate it when you help them. Make sure you have detailed programs and training in place so you can get the most out of the communication. What other services does your member need besides just the auto loan? You have them on the phone and have their full concentration don’t waste this opportunity.
Go after new members with your great auto refinance program. There are thousands of people out there who could be doing business with you. Why aren’t they, you haven’t reached them yet. Planning out a targeted marketing campaign, utilizing direct mail, and followed up by a phone call will guarantee the sought after auto loans and increase your membership. When you are on the phone with your soon to be members sell them the entire package not just the loan. With everything that’s going on in the banking industry there are thousands of people out there just waiting for a reason to leave their overpriced banks? Reach out, make it easy and before you know it, you will be growing again.