Tag Archive | "CUDL"

Former AutoNation Direct Head Joins CU Direct

ONTARIO, CALIF. — CU Direct today announced the appointment of Ron Frey as chief strategy officer of its automotive solutions. He joined the company this month.
Frey will oversee the planning and direction of automotive solutions as it relates to product and market expansion. This includes oversight of existing products, including CUDL, a credit union auto financing platform, and AutoSMART, an online vehicle-shopping site for the credit union industry.

“Ron’s expansive leadership, partnered with strategic planning, has led him to succeed in implementing cutting-edge technology solutions,” stated Tony Boutelle, president and CEO of CU Direct. “We are excited to have him join our team, as we continue to evolve our innovative automotive products to better serve our 1,000 credit unions and more than 12,000 dealer partners.”

Before joining CU Direct, Frey spent 30 years serving in the automotive and credit union industry. His most recent position was chief strategy officer and president of AutoNation Direct. He has also served as CEO of Autoland and COO of TrueCar.

“I am pleased to be joining the CU Direct Team, where I can leverage my background in technology innovation, deep automotive experience and credit union experience,” said Frey. “I look forward to digging in and looking for ways to bring innovation and value to our credit unions and dealer partners.”

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CU Direct Expands Into Canada

Ontario, Calif. — CU Direct Corp.’s CUDL brand expanded into Canada with the launch of Auto Premier in Montreal, Quebec. The company partnered with Canada’s largest credit union/CO-OP, Desjardins Group, in developing the credit union’s new member auto research and buying Web site, eSpaceAuto.com. Desjardins Group, based in Levis, Quebec, serves 5.2 million members throughout Canada, and has C$200 billion in assets.

The credit union’s new Web site will help connect its members to its more than 2,200 auto dealer and merchant partners throughout Quebec to shop for and buy their next vehicle. It will also provide Desjardins Group with a key resource designed to enhance both member brand awareness and overall member satisfaction, and help drive member financing at the dealership.

“The partnership between Desjardins and Auto Premier will allow automobile and durable goods dealers in Quebec and Ontario to market their inventory at large and benefit from Desjardins’ five million-member network,” says André Chatelain, vice president and general manager of Desjardins Card Services.

For the credit union’s members, eSpaceAuto.com offers an advanced vehicle shopping experience, providing robust research capabilities and lending services, as well as an expanded library of online shopping resources designed to help them get a good deal on their next vehicle purchase.

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Open Dealer Exchange, CUDL Announce DMS Integration

SOUTHFIELD — Open Dealer Exchange LLC announced an agreement for integration with CUDL. Through the alliance, CUDL will be offering direct credit application and contract validation data integration from the dealer’s point-of-sale system directly to the CUDL system.

“The agreement with Open Dealer Exchange allows our credit union members a more streamlined approach during the contracting process,” said Tony Boutelle, Credit Union Direct president and CEO. “With our combined technology expertise, lenders will have access to critical information directly from the DMS, something that is tough to do today without the connection to Open Dealer Exchange.”

Open Dealer Exchange, a joint venture between ADP Dealer Services and Reynolds and Reynolds, integrates a finance source or F&I product provider directly within an auto dealership’s DMS, according to the company. From within the DMS, dealers will be able to send complete customer and deal information directly to CUDL then complete the credit application process within CUDL. They also will have the ability to perform contract validation on each deal directly from their DMS.

“Our agreement will enable CUDL to take their credit and contracting services to the next level, which is a step in the right direction for the industry as a whole,” said Steve Luyckx, general manager for Open Dealer Exchange LLC. “Dealers have had limited or costly connectivity between their lenders and their DMS, and this alliance bridges that gap and combines the strengths of each system.”

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CUDL Credit Unions Picking Up the Pace

ONTARIO — After hitting a monthly low in March, CUDL credit unions have increased their market share by nearly 2 percentage points, and have maintained a share of more than 17 percent since May, CUDL, which provides an indirect lending platform that connects dealers to about 950 credit unions, revealed in late September. On a year-to-date basis, credit unions own a 16.7 percent share of the auto finance market.

Representing the seventh largest auto finance segment through August 2011, CUDL credit unions have financed more than 321,000 loans year to date, a 13.4 increase, reported F&I and Showroom magazine.

The segment’s auto loan penetration rate did decline to 16.1 percent in the second quarter from 16.6 percent in the year-ago quarter. However, credit unions were able to increase their unit loan volume by 13.4 percent through August.

“Although the total number of loans was flat since the first quarter of this year, the number of credit union members continues to grow,” said Andrea Salgado, a CUDL market research analyst who led the Sept. 28 Webinar.

Citing data provided by Callahan & Associates, Salgado added that auto loans represented 29 percent of the average credit union loan portfolio, based on dollar volume.

Salgado also noted that auto dealers continue to be a major driver of new business for CUDL credit unions, with 67 percent of consumer financed at the dealership being new members. Thirty-three percent of loans originated at the dealerships were made to existing members.

“These values have stayed the same for the last several months,” said Salgado, who noted that indirect loans were down 5 percent. “A year ago this was at 67 percent for new and 34 percent for existing.”

Prime new-vehicle originations made on the CUDL platform represented 76.4 percent of auto loans originated, down two percentage points from a year ago. Prime used-vehicle originations dropped 2.9 percentage points to 67.3 percent. Average FICO score for CUDL credit unions stood at 729 vs. 733 a year ago. The industry’s average FICO score, according to J.D. Power and Associates, is 728.

Average amount finance for used vehicles among CUDL credit unions was $17,939, while the industry average through July stood at $17,385. Average amount financed for new was up from $25,680 a year ago to 27,880 through August, according to CUDL data.

As for loan performance, delinquencies and charge-offs for the segment continued to track below the 1 percent mark for auto loans outstanding. Credit unions also claimed the lowest 60-day delinquency rate among other lending segments, including banks, at 0.33 percent, with dollar volumes of at-risk loans dropping by $1 billion.

The Webinar also provided an update on the overall industry, with Salgado reporting that auto loan volumes have increased for all lenders except for Chase and Toyota. Ally, she noted, continues to lead the way, growing its loan volume by 51.9 percent year to date.

Salgado also noted a rise in new-vehicle sales vs. used-vehicle sales, the two segments crossing paths between June and August. In August, new-vehicle sales increased 7.5 percent from a year ago, while used-vehicle sales declined 3.3 percent. Through August, new-vehicle sales have climbed 11 percent from last year, while used increased 4 percent. Combined, vehicle sales grew by 6 percent during the first eight months of the year.

Sales right now are tracking at a 12.1 million-unit rate, an increase from the 11.4 seasonally adjusted annual rate recorded through August 2010. Currently, market analysts predict that the industry will end the year between 12.5 and 12.9 million units sold. Salgado said she believes the industry will end the year at the lower end of that range.

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CUDL to Represent 900 Credit Unions at NADA Conference

ONTARIO – CUDL, which administers an auto lending network for credit unions, will be representing more than 900 partnering credit unions for the eighth consecutive year at the National Automobile Dealers Association (NADA)’s conference, scheduled for Feb. 5-7 at the Moscone Convention Center in San Francisco.

Building upon the company’s previous success at the NADA conference, CUDL will continue efforts to further advance dealer awareness of the value of its growing credit union lending network and benefits of a strong credit union and dealer alliance, reported F&I and Showroom. During the event, CUDL will also be highlighting the ever-expanding suite of dealer solutions.

Although credit unions have faced strong competition in 2010 with the return of banks and other lenders to the marketplace last year, their market share picked up in the second half of the year – rising from a low of 16.2 percent in March to 17.6 percent in November.

CUDL also experience growth with its national auto lending network last year, signing up 151 new credit unions and 1,158 new dealerships. Currently, CUDL’s national lending network includes 6,900 dealerships and 920 credit unions nationwide, representing 27.5 million members.

“CUDL’s representation of its 900 credit union partners at the convention further underscores the significance of relationships between credit unions and dealers, and emphasizes the importance credit unions’ see in partnering with dealers to get credit union members into new cars,” stated Tony Boutelle, CUDL’s president and CEO. “Our goal is to increase dealers’ awareness of the value of our credit union-based lending network and the many tools we provide to help them grow their bottom lines.”

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CUDL Introduces New Autosmart iPhone App for Members

ONTARIO, Calif. – CUDL, a lending solutions provider to the credit union industry and administrators of the nation’s largest auto lending network for credit unions, has rolled out its new CUDL AutoSMART Application for the Apple® iPhone®.

The iPhone app, designed specifically for credit union members, replicates features of the well-known CUDL AutoSMART website as a fully functional app for Apple’s popular iPhone, as well as for other Apple products, including the iPad™, and iPod Touch®.

Free to iPhone owners through the Apple App Store, the new app gives members and consumers the ability to perform selected steps of the vehicle buying process from their iPhone, iPad, and iPod Touch, from initial vehicle shopping and research, to accessing their pre-approved credit union loan, and connecting with an auto dealership in their area. For their convenience, members can access the Apple App Store and download the AutoSMART app through links that are provided on credit unions’ individual AutoSMART websites.

The AutoSMART app connects credit union members looking to purchase and finance a vehicle with both their credit union and the more than 5,700 dealers posting live inventory to CUDL’s AutoSMART website. Members can use the new mobile tool to conveniently shop the more than 600,000 vehicles listed nationwide on the AutoSMART website. Credit unions benefit from their ability to stay connected to their members through the entire vehicle buying process, improving member loyalty and their ability to retain member financing in-house, and driving more member auto loans.

“Our AutoSMART iPhone application is our first step in changing the automobile purchasing process by giving the consumer control over their financing while sitting in the F&I office,” said Kip Haas, executive vice president of products and technology at CUDL.

Auto dealers will find increased value in posting their vehicle inventory on the CUDL AutoSMART website, as their inventory will now be easily accessible by members and consumers through the new AutoSMART app. Dealers will also benefit from the ability to connect with new customers, as iPhone owners can use the app to contact dealers for vehicle quotes. The app also has a dealer search feature that allows users to search for and locate dealers in their area by distance and by using a visual map overview.

The new app incorporates content from the CUDL AutoSMART website’s extensive library of research tools, including: an advanced vehicle search that allows for search by make, model and year; helpful car buying articles; affordability and payment calculators; researching vehicle trade-in values; and the ability to confirm credit union financing.

“Our goal was to provide a dynamic research tool that leveraged the AutoSMART site to further simplify members’ approach to vehicle shopping, while also helping our credit unions to stay connected with their members throughout the car buying process, and helping dealers to connect with customers,” stated Tony Boutelle, president and CEO of CUDL. “As a result, our credit unions have a greater opportunity to not only improve their members’ auto buying experience, but also to capture more member loans.”

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