HOUSTON — Fort Financial Credit Union (FFCU) will now offer Auto Financial Group (AFG)’s Driving Sense as a direct and 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.
The Fort Wayne, Indiana-based FFCU has branches throughout the state, as well as in Illinois, Mississippi, and North Carolina, and currently has more than 45,000 members.
“DrivingSense is an opportunity to expand, which benefits our membership,” stated Tammy Hartman, vice president sales and service for FFCU. “The indirect lending option helps in terms of gaining new members, and the direct lending gives our existing members an important new option.”
“We are excited to be working with FFCU,” says AFG President Richard Epley. “We look forward to providing their credit union members with lower payments and to helping train local auto dealers in the program.”