Leaders of the nation’s largest credit unions recently met to discuss cooperative strategies for increasing market share in the indirect auto lending market during the first national indirect auto lending summit, held in La Jolla, Calif.

The meeting, which drew more than 60 CEOs and senior lending executives from 34 credit unions and five auto lending Credit Union Service Organizations (CUSOs), was hosted by Credit Union Direct Lending (CUDL), the largest point of sale network for credit unions and Callahan & Associates, Inc, a leading national credit unions consulting and research firm.

Recognizing a decline in auto lending market share and increasing competition from zero percent financing campaigns, the group discussed how credit unions could work together to increase their indirect market share. Among the topics discussed were strategies on how to work most effectively with dealers, ways to aggregate credit union volumes, collaboration or competing with other lending platforms such as Dealer Track and Route One, and how to present and enhance credit union value to both members and dealers.

Interest in aggregating efforts around common technology and marketing was an immediate priority for many of the credit unions. A third-party study on the most effective indirect auto lending models and best practices will be completed, attendees agreed. The auto lending leaders agreed to form a coordinating committee to develop the opportunities suggested during the conference.

Some of the nation’s largest credit unions were represented at the summit including Navy Federal Credit Union, The Golden 1 Credit Union, Suncoast Schools Federal Credit Union, State Employees Credit Union (MD), and America First Credit Union (Utah). In addition, indirect lending CUSOs in Colorado, Texas, Missouri, and the Washington D.C., area were represented.

“Credit unions are known for providing members great auto loans and must develop an effective way to continue offering competitive auto loan opportunities," said Jeffrey Farver, president and CEO of San Antonio Federal Credit Union. “Many credit unions have noticed an increase in auto loan portfolios in markets where credit unions have organized their indirect financing on a common lending platform.”

“The Indirect Lending Summit provided an opportunity to discuss realistic ideas of how technology can help the credit union community join together and work directly with auto manufacturers to create a win/win solution for both parties -- more car sales for dealers and credit unions build their auto loan market share,” pointed out Gary Oakland, president and CEO of Boeing Employees Credit Union.

The auto lending leaders will hold their next meeting during CUDL’s annual Auto Lending Symposium in Las Vegas on June 18-20.

About Credit Union Direct Lending

Based in Rancho Cucamonga, Calif., CU Direct Corp. administers the Credit Union Direct Lending (CUDL) program, which allows members to receive credit union financing at the auto dealership through an automated decisioning system.

CU Direct develops custom applications, training, and marketing programs to help credit unions achieve their indirect lending goals. The CUDL program includes 1,798 dealerships and 236 participating credit unions in California, Nevada, Texas, Oregon, Washington, Massachusetts, New Hampshire and Rhode Island.

In 2002, participating CUDL credit unions funded 177,011 contracts for more than $3.3 billion in credit union auto financing. For more information visit www.cudirect.com.

About Callahan & Associates

Callahan & Associates is a Washington, D.C.-based firm specializing in financial publications, software, investment management and strategic planning for credit unions.

For more information visit www.creditunions.com.