Within the lending industry, the auto loan department is an ecosystem unto itself. In the current economy, it is the only thriving ecosystem. The situation at one federal credit union tells the entire story.
Randolph-Brooks Federal Credit Union recently announced that it had surpassed $1 billion dollars in auto loans. This number marks a significant growth spurt in the last year, especially since the company has dropped its Texas auto loan rate to 1.9% – now that’s low! After dropping the the rate, there was an uptick in refinancing loans for current customers and customers at other banks. Overall, the credit union is seeing a growth in assets, loans, and members.
”I think it’s a milestone because it’s a billion dollars and we’ve done it in an economy where there’s a lot of turmoil going on,” Sonya McDonald, senior vice president of market development for Randolph-Brooks says. ” … (And) we’ve done it by being aggressive in marketing and pricing and just offering good old service.”
The auto loan segment is the only segment of the lending industry that is showing strong growth. Mortgages are showing a regression and credit cards are barely doing more than treading water. Companies like Randolph-Brooks are on the leading edge of what may be the source of a full financial recovery.