Lending Solutions

Auto Financial Group

AFG’s lower auto payment Residual Based Financing programs are the ultimate win-win situation. Your members get a lower monthly auto payment from a credit union they trust. Your credit union gets higher yields and increased loan volume.

According to Experian’s State of the Automotive Finance Market Report, roughly 60% of all new car purchases in the state of Michigan use some sort of residual based financing. Your members look to you for the best rates on conventional loans but have been forced to captives and your competitors for alternative low payment options, until now.

AFG’s walk-away Balloon and Leasing programs provide:

Higher yields: More interest income for your financial institution due to higher average daily balances.

Lower monthly payments on new and used vehicles: Member benefits from, on average, 30-40% lower monthly auto payments compared with conventional financing.
 

Reduced negative equity: Put your members into shorter loan terms that more align with their driving habits rather than stretching terms and them getting out early; this puts members on a negative equity treadmill. 

Guaranteed future value and walk-away option: AFG guarantees 100% of the future value of the vehicle at the time of financing, so your member can walk away from the final payment at the end of the term. 

End of term process: Auto Financial Group handles disposition of the vehicle with no end-of-term hassles or required pre-payment penalties.

Market differentiation: Recapture consumer loans currently being lost to competitive residual based financing products through a solution that carries your brand name.

 

For more information, including a product brochure, video testimonials, case studies and more, please visit: https://www.autofinancialgroup.com/additional-resources/