Millions of consumers are overpaying on their auto loans, yet few know refinancing is an option. In this episode, Nicholas Goraczkowski, president of iLending, lays out the opportunity for credit unions to boost loan portfolios, improve member financial health, and capture market share in a booming auto refinance space.
Key takeaways:
00.58: Nick explains the primary reasons consumers don't refinance auto loans—lack of awareness and fear based on negative mortgage refinance experiences.
02.52: Insights on the $1.7 trillion auto loan market, and how borrowers seek refinance not just for interest savings, but primarily for payment flexibility.
05.13: Why refinanced auto loans typically outperform indirect auto loans.
06.25: Definition of "back-end" products (loan protection) and how shifting loan-to-value ratios impact approvals and risk management.
09.24: Impact of Federal Reserve interest rate policies on refinance demand, and an overview of the strategic adjustments lenders are making for 2025.
12.13: How credit unions can benefit from fintech partnerships to attract new member segments without cannibalizing existing business.
14.21: Why efficient, accurate retitling processes are crucial to refinancing success and how iLending approaches this.
17.22: Nick’s best practices on transparently selling optional loan protection products, ensuring full regulatory compliance.
21.35: Key factors shaping the auto refinance market, including vehicle values, leasing trends, and the competitive landscape.
Resources Mentioned:
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