The great shrinking auto loan margin

first_img 20SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr,Mark Hein As CEO for SWBC’s Financial Institution Group, Mark Hein manages the day-to-day operations and sets the strategic direction for the division. He is committed to continuous product training, increasing … Web: www.swbc.com Details It’s no secret that auto loan competition is steep; we talk about this often because we realize how important auto lending is to so many of our clients. With the number of financial institutions, ‘buy here, pay here’ car lots, insurance companies, and online retailers, credit unions are often forced to find creative ways to keep their current borrowers and attract new ones. Often times, this comes in the form of lower rates. And when rates continue to drop, not only does it become more difficult to compete for the pool of borrowers, but returns shrink on the loans that are closed, causing a decrease in interest income and revenue. In fact, according to the 2014 NADA Data report, in 2014, auto dealers sold 16.43 million units, but only experienced a profit margin of 2.2%.What’s the Driving Force Behind Declining Rates?As mentioned above, the increase in competition has driven rates down, but there are several other factors in the rate decline. Consumers have gotten more savvy, and now have online resources such as Edmunds.com and Autotrader.com that arm them with information such as invoice prices and comparable pricing for vehicles in their region so that they can negotiate for the price and rate that they want. In addition, consumers aren’t afraid to shop around to find the deal they want.Alternative Ways to Boost Revenue With auto interest income being a key business component, and the market simply not being conducive to it at the moment, credit unions have to find alternative ways to generate income while still serving their members. Point of sale and insurance products go hand-in-hand. Think of it this way: would you buy ice cream at one store and then drive across town to another store to buy cones? Probably not, so why make your members do this when it comes to purchasing valuable vehicle protection products?Vehicle protection products can sometimes have a bad reputation, particularly in the dealership F&I office where the price is marked up significantly, up to $800 for a GAP policy according to Edmunds. The fact of the matter is, a GAP policy can be critical in protecting your borrowers from the inevitable depreciation that accompanies automobile ownership, particularly those borrowers with low or no down payment. And when purchased from you, they can get a much more competitive price on the policy, making your auto loan more valuable, and ultimately building trust and loyalty with your members.Like most forms of insurance, you don’t realize how important it is until you have to use it. If your borrower gets into an accident, the last thing they want to add to the stress and worry of the situation is the frustration and disappointment of learning they still owe money on a vehicle that they can no longer drive. Vehicle protection policies can help prevent this, and in some cases, put your borrower back into a vehicle, financed by you.As you protect your members’ vehicle investment, you will inevitably boost revenue, helping to fill the gap of the interest income lost to shrinking margins. GAP with PowerBuy™ can give you the ability to provide your members with a vehicle protection product that can not only pay off the balance of their auto loan in the event of a total loss, but also give them funds to finance their next vehicle with you.Click here to learn more.last_img read more


Details of Senior Hurling backroom team revealed

first_imgTipp FM Hurling Analyst Tom McGrath says the addition of Declan Fanning will be a boost to the set-up. While news that Cloughjordan native Eamon O’Shea is set to remain at the helm was confirmed at the weekend, further details of his backroom staff have emerged. Former inter-county player and Killenaule clubman Declan Fanning will join the team as an additional selector….Paudie O’Neill will remain as coach, while Michael Ryan will be the Assistant Manager…however a recommendation has been made that Ryan take over as manager from 2016. The motions will go before this Wednesday night’s meeting of the County Board. last_img


MLB trade rumors: Indians discussing deal for Mariners’ Domingo Santana

first_imgThe year before that, though, he tallied 30 home runs and drove in 85 runs while stealing 15 bases.The Indians are not only in need of help at the plate, as they are middle of the pack in both runs scored and home runs, but their outfield is especially thin with Greg Allen, Tyler Naquin and Oscar Mercado getting a good amount of reps there.An addition of a player like Santana would be good for the team and it would give them a controllable piece moving forward, as well. MLB trade rumors: Indians ‘more likely than not’ to move Trevor Bauer MLB trade rumors: Indians, Rays interested in Blue Jays’ Justin Smoak MLB trade rumors: Astros have had ‘recent communication’ with Indians about Trevor Bauer The Indians have their eye on Mariners outfielder Domingo Santana.Cleveland had discussions with Seattle on Tuesday about the right-handed hitter, but no deal appears to be imminent, according to The Athletic. In addition to talks on Bauer, #Indians actively pursuing a bat. Had multiple conversations today with #Mariners about Domingo Santana, but no deal close. Also talking to #BlueJays about Justin Smoak, as @JonHeyman reported earlier.— Ken Rosenthal (@Ken_Rosenthal) July 31, 2019Santana is having a nice bounce-back season with the Mariners as he is batting .273 with 20 home runs and 66 RBIs.He was traded to Seattle from Milwaukee in the offseason after he struggled to find his way into a loaded Brewers lineup last season. Related News Santana has two more years of team control left.Cleveland is not just limiting its scope to Santana, though. It has reportedly had contact with the Blue Jays about first baseman Justin Smoak and with the Tigers about Nicholas Castellanos in recent days.last_img read more


City of Fort St John to hold Open House on Kin and Surerus Park upgrades

first_imgFORT ST. JOHN, B.C. – The City of Fort St. John will be holding an Open House in regards to the future of Kin and Surerus Parks.According to the City, as part of the Parks and Recreation Master Plan, it was identified that both Kin and Surerus are in need of upgrading.As part of the upgrading process, the City is seeking public input on the current state of the parks and what the future vision should include.- Advertisement -The City says work on both Park Site Plans will be conducted at the same time for efficiency.Following the creation of both Park Site Plans, the upgrades will be included in future Capital Budgets for consideration.The Park Site Plans Open House will be taking place at the North Peace Cultural Centre on Tuesday, May 28 from 5:30 p.m. to 6:30 p.m. for Kin Park and 6:45 p.m. to 7:45 p.m. for Surerus Park.Advertisement For more information, and to provide input, you can visit letstalk.fortstjohn.ca.last_img read more



first_imgThe COLAISTE ULADH original schoolA fascinating talk about Pearse, Plunkett and Casement – Coláiste Uladh and the Cultural Revolution, takes place next week in Letterkenny.Donegal County Museum has issued an open invitation to the event which will be given by Dr Seosamh O Ceallaigh on Thursday 4 February at 8pm.Coláiste Uladh was established in Gortahork in 1906 to foster the revival of the Irish language and culture which was taking place in the country at the time. Leaders of the Easter Rising in 1916 including Patrick H Pearse, Joseph Mary Plunkett and Roger Casement were either involved in the development of the college or had attended as students.Admission is free and all welcome.If you have an event or news story in your area, please email us the details at [email protected] 1916 TALK TO TAKE PLACE AT COUNTY MUSEUM was last modified: January 27th, 2016 by StephenShare this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Reddit (Opens in new window)Click to share on Pocket (Opens in new window)Click to share on Telegram (Opens in new window)Click to share on WhatsApp (Opens in new window)Click to share on Skype (Opens in new window)Click to print (Opens in new window) Tags:1916County MuseumRisingTalklast_img read more