How do auto dealers view credit unions?
Pretty well lately, according to a survey by GrooveCar Inc., which arranges auto financing through credit unions.
Credit unions made headway into auto lending and even dealership floorplanning in the last year as other financial institutions retrenched during the credit crunch. But those players are getting back in as the crisis abates.
“When you're the only game in town, it's easy to be a hero,” says GrooveCar President David Jacobson. “While some credit unions have strengthened their position, others have not.”
His firm surveyed about 150 dealership finance and general managers in the metro New York market, asking if their perceptions of credit unions have changed in the last 24 months.
Three out of four said their perceptions of credit unions improved, 15% reported no change and 10% had a lower opinion.
Many domestic dealers, including Jeep, Chrysler, and Chevrolet, expressed gratitude for credit unions filling a void during tough times.
Dealers with a lower perception of credit unions blame limited back-end advances on warranties and such, limited accessibility and slow funding.