Using Repossessions to Market Loans

Using Repossessions to Market Loans

Credit unions have worked hard to establish themselves as the best choice in automotive lending.  Both prudent lending practices and neighborly service have solidified this excellent reputation. Many car dealerships partner with credit unions because of their flexible financing options as well as the assurance that their clients will always be treated with genuineness. Even now with auto sales slumping, government regulation, strict underwriting policy, and an influx of loan defaults they still remain on the vanguard of consumer lending. While working to provide competitive lending options in this erratic economy, credit unions are faced with tough choices in maintaining this tradition. It is in moments like this that lenders can recalibrate and provide new solutions for future consumer financing opportunities.

As a brief introduction, allow me to explain how I became involved with credit unions and auto marketing. After a decade of working in consumer lending I discovered several credit unions including my own were selling vehicles to the public.  Noticing the bargain prices available I began the hobby of collecting links until I had a list of every one in my home state of Utah. The list became popular with friends and clientele as a tool for finding great deals on credit union owned homes and vehicles. The response was so overwhelming that I continued collecting until I finally completed the entire United States. Eventually this list evolved into RepoFinder.com and has become the first nationwide directory of its kind. The site is very simple and functions as a free service to both credit unions and consumers looking to make a deal on a vehicle (or real estate). In the process of gathering these links for RepoFinder I also had the unique opportunity to visit and peruse every credit union website in America. Today the site continues to grow in popularity, and the underlying message is that the public is extremely receptive to the idea of buying cars directly from credit unions. While continuing to build and maintain the site, I’ve watched many successful loan marketing strategies evolve and applied today. 

             Not every lender chooses to sell their own repossessions, but for the do-it-yourself types this is a great opportunity to build and grow auto lending programs. Bad economy or not, every customer wants a good deal. The concept of a consumer being able to buy a vehicle from a credit union is very refreshing for two reasons. First, buyers get the customer service, lending expertise, and trust found at a car dealership. Second, they get the commission free, no pressure experience of buying from a private seller. It’s literally the best of both worlds. Marketed correctly these orphaned vehicles can be used to draw more car buyers to your website and eventually your loan department.

              In viewing the many remarketing websites it doesn’t take long to see who has figured out how to get the most out of selling their vehicles. Rather than hiding your "for sale by credit union" assets, these vehicles can be used as a teaser to drive traffic to your lending department.  The most effective remarketers out there have an entire section on the website designated to sell repossessions.  Once this page is established you can now build in every tool necessary for your customers who are looking to buy a car.  Some useful resources could include; links to automotive research, price guides, a loan calculator, live chat, preferred local car dealers, auto insurance information, and most importantly a prominent advertisement featuring the credit union’s auto loans.  The idea is to create a location on your website where you can build a very prominent “Auto Buying Center”. 

  

               Even if there is currently no vehicle inventory to sell, several credit unions are still using this same listing page to promote and capture auto loan business. By placing a phrase such as, “We currently have nothing for sale. Please check back often,” a buyer is given something to look forward to and is encouraged to visit on a regular basis. Outside car buyers visiting your link from RepoFinder or anywhere else will see you're taking an active approach and will be inclined to return again.  These buyers will also see your lending advertisements and any other resources you have available to draw their attention.  As an example, I’ve seen some credit unions offering special rates on their repossession sales.  If you have low rates or other promotions to offer, make sure that buyers wouldn’t consider getting a loan anywhere else.  By being proactive, lenders can build on the trust they have earned and become experts in automobile marketing.

There are many ways to get people to your website and using repossession sales as a teaser is just one example. 

As a free resource, RepoFinder continues to bring thousands of car buyers to your websites each month.  By keeping your website link current you can make sure buyers aren't missing what you have to offer.  Craigslist and other free classified services are also a great resource for attracting buyers to your repossession listings and loans.  Make a practice of asking potential car buyers how they heard about your vehicles to see where your traffic is coming from.  Keep an eye on what others are doing and then see what works best for you.  Through creativity and reinvention, credit unions can continue to position themselves as leaders in auto lending.