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Opportunity to accelerate the growth of the credit union’s loan portfolio.
New loan opportunities arise from direct sources, applicants who apply for
a loan at the credit union but do not qualify for a primary loan. In addition, lending opportunities (primary and CURE loans) are generated from indirect sources; auto dealers who seek financing for vehicles. |
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Carfinders greatly reduces the risk of the credit union losing loans to dealers. |
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CURE’s loan guaranty, secured by a funded loan loss reserve account, eliminates the normally inherent risk of an expanding loan portfolio. |
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The credit union incurs no out-of-pocket cost/expense to participate in the CURE program. |
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The portfolio yield is essentially the same as the credit union's prime portfolio yield with lower risk.
With no additional overhead or other costs, loan growth results in significant incremental, bottom-line profit. |
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The new loan business provides an opportunity for the credit union to market its full array of banking services to new loan customers. |
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Carfinders provides credit union with a “retail” outlet for the disposal of its repossessed assets resulting in a higher average sale prices and lower net repo losses. |
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Benefits to the credit union include more loans, additional profit, retention of long-term members (customers), addition of new members and the strengthening of relationships with existing members. |
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Members are provided an added benefit of membership in the form of a car buying service. |
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The CURE program assists credit impaired members with the re-establishment of their credit. |
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Members can save hundreds or thousands of dollars buying through Carfinders vs. a dealership |
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The CURE program provides many credit impaired members with a lower rate than the rates available in the market. |
