HOUSTON — United Federal Credit Union (UFCU) will now offer Auto Financial Group (AFG)’s DrivingSense as an indirect lending option as part of a recent agreement with the provider of residual-based financing products for credit unions.
DrivingSense is an auto financing product that offers the lease-like benefits of a balloon loan to credit unions and their members. It allows credit unions to “build” a vehicle for their members, compare payment terms with conventional loans, and offer their members lower payments (often as much as 40 percent lower), flexible two- to six-year terms, actual ownership of the vehicle and several end-of-term options.
DrivingSense removes the financial risk to the credit union by guaranteeing the predetermined residual value of the vehicle through third party insurance, as well as handling the vehicle’s disposition at the end of the term. AFG is paid one low administration fee for each DrivingSense loan, while the credit union earns all the interest. Credit unions are protected while building an important relationship with their members.
Michigan-based UFCU currently has more than 84,000 member/owners worldwide and manages assets in excess of $800M.
“DrivingSense adds another financing option for our credit union members, which is particularly important in today’s economy when people are so payment conscious,” stated UFCU Indirect Lending Manager Noe Najera. “We want to be a leader in the credit union movement offering this kind of service.”
“We continue to believe that this is an important time for DrivingSense,” says AFG President Richard Epley. “We look forward to working with UFCU and providing their credit union members with lower payments and UFCU itself with higher yielding loans, a combination of features that are simply unmatched in the current marketplace.”