Experian Automotive reported that credit unions held a 20.3-percent market share of all auto financing during the second quarter, up from 18.7 percent a year earlier.
GrooveCar is looking to help credit unions boost the figure even more during this quarter through what the company is calling its Ultimate Year-End Auto Sales Event.
Beginning on Oct. 20 and running for 10 days, Long Island-area credit unions are offering a $300 savings certificate off the member’s best deal from participating dealerships.
Along with that certificate, GrooveCar highlighted that participating credit unions often originate with APR about 21 percent below the industry average. Experian Automotive pegged the average APR on new-vehicle financing at 5.20 percent in Q2 with the used-vehicle financing reading at 9.02 percent.
“This is our annual sale, and credit unions are pulling out all the stops during this promotion period,” GrooveCar senior vice president Frank Rinaudo said. “Each year excitement builds for credit unions, area dealerships who have an extra incentive to move end-of-the-year inventory, and members who benefit from all the savings.”
GrooveCar has positioned this campaign to leverage the fall selling season in an attempt to present the best value to its partners and their clients, including the credit union, dealership and members.
“Dealerships are looking to clear inventory to make room for new models, and are very motivated to sell,” Rinaudo said. “We are in the business of facilitating the car purchase transaction between three parties, and these sales are an effective means to capitalize on those relationships.”
As the sector’s auto finance market share grows, GrooveCar also highlighted credit union membership in the U.S. is rapidly growing, too. The company mentioned 4.6 million new members joined the ranks during the first half of 2017.
GrooveCar reaches nearly a million members in the region during its auto sale, and Rinaudo pointed out that dealerships are more than ready to service the influx of potential buyers.
In addition to running the sale with the credit unions and dealerships, GrooveCar added that it provides all the tools needed to make the sale a success.
“We begin planning this sale months in advance, working with our credit union partners on the right messaging they need to reach the member,” Rinaudo said.