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Credit Unions Tapping Auto Financial Group’s Balloon Loan Program

January 22, 2013

HOUSTON — Auto Financial Group, an online provider of residual-based financing products for credit unions, today reported strong momentum for its DrivingSense balloon loan program.

New signings and renewals include Anheuser Busch Employees FCU, Congressional FCU, Corning Credit Union, Dupaco Credit Union, Frakenmuth Credit Union, GPO, SeaComm FCU and Security Credit Union. Together, these credit unions manage more than $4.5 billion in assets and serve more than 400,000 members.

“For the last 12 years, AFG has guaranteed predetermined residual values of the vehicles. But today, a number of industry and broader economic factors have combined to increase used-car values, allowing AFG to offer broader, more comprehensive coverage which further mitigates risk to all stakeholders,” said Richard Epley, president of Auto Financial Group.

“At a time when credit unions are looking for opportunities to book more loans and mitigate risk, AFG’s DrivingSense program is well-positioned to appeal to credit union members looking for lower payments and flexibility.”

Key features of the AFG Driving Sense balloon loan program include residual value insurance, compatibility with existing indirect programs, automated quoting system, automated end-of-term process, and higher yielding loans. The program also positions financial institutions to recapture vehicle financing currently being lost to competitive low payment financing options, according to the company.

“We have been using the AFG Driving Sense balloon loan program for the last two years,” said Gary Roback, vice president of member services at GPO FCU. “Our members like the lower payment and flexibility a balloon loan offers, and the program has made a positive contribution to our bottom line.”

 

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