The partnership momentum Auto Financial Group (AFG) generated during the fourth quarter now is helping one of the nation’s leading sources of residual-based financing and vehicle remarketing for financial institutions during the opening segment of 2019.
AFG recently announced that Pentagon Federal Credit Union (PenFed), the second largest federally chartered credit union in the United States based on assets, has signed on to AFG’s residual based financing program.
Officials highlighted the partnership with PenFed further reinforces AFG’s mission to expand into new markets to meet the rising consumer demand for residual based financing. AFG’s program will be available to PenFed’s member base of 1.8 million.
“The AFG program will allow us to extend residual based financing to a greater number of vehicles than our prior program. We will therefore be able to expand low monthly payment financing options for our members during a time when auto industry trends are pushing the limits of affordability,” PenFed vice president of automotive lending products and sales Ivan McBride said in a news release.
The program can allow PenFed to provide residual based financing for new and up to 5-year-old vehicles, while AFG manages the residual value risk and the vehicle turn-in process, making the processes more convenient for members.
“We are excited to welcome PenFed to the AFG family and look forward to contributing to their success and exceeding their expectations with AFG’s superior customer service,” AFG chief executive officer Richard Epley said.
To learn more about the AFG’s residual based financing programs, visit www.autofinancialgroup.com/products.