The auto lending world is about as fast paced as it gets, with steep competition and innovation speeding toward the future. This leaves financial institutions on a constant hunt for new ways to fuel their revenue streams while providing valuable benefits to their borrowers.
One often overlooked opportunity is auto loan protection products. These products not only provide peace of mind for members but also generate valuable non-interest income for the credit union!
Helping your borrowers see the value won’t be a race that is difficult to win, considering just how beneficial they can be for protecting borrowers’ investments when the unexpected occurs.
Why Auto Loan Protection Matters To Your Borrowers
The value of protecting a borrower’s investment is immeasurable, especially when you consider just how rapidly changing market conditions can impact their financial wellbeing. Investing in auto loan protection products at loan closing can help decrease the impact on your borrower when faced with challenging situations such as total loss, unrecovered theft, or mechanical breakdown, protecting the investment your borrower has put into their vehicle.
Strategies To Fuel Sales
Utilizing effective strategies to communicate the value for your borrower to protect their investment with auto loan protection products can be monumental to fueling the credit union’s income while protecting their financial security. A few efficient methods include:
- Educational Resources: Educating your borrowers about the financial risks involved with their auto loan might help them see the advantages of these products.
- Making It Fit: Offering flexibility in protection plans allows borrowers to tailor them to their needs, boosting the likelihood of a sale. Finding the right mix of products, tailored to a borrower’s driving habits and plans on ownership length, can ensure the right fit for every loan.
- Offering Incentives: Incentives can be a great tool for encouraging borrowers to opt in to auto loan protection. From discounts to bundling options and referral bonuses, there are many ways your credit union can utilize this effective tool to turbocharge your sales.
- Incentivize Your Team: Boost your team’s motivation with performance-based rewards for those who meet protection sales targets.
- Quick Processing: Tools like SWBC’s LOS Express Unity® help loan officers get quick quotes and generate contracts efficiently so your loan officers and borrowers can move quickly through the purchase process.
- Train Your Loan Officers On Effective Sales Strategies: Your loan officers will play a key role in driving your auto loan protection sales. To ensure they are effective in their sales strategies, provide them with the training they need to be fully equipped with the knowledge and techniques it takes to form a winning strategy. For instance, at SWBC, our performance consultants educate sales representatives on the products we provide to financial institutions.
3 Winning Points For Auto Loan Protection
Auto loan protection products offer a range of benefits that safeguard a borrower’s peace of mind while simultaneously buckling up their financial security. When explaining why they should consider the investment, these points just might win them over:
- Auto loan protection products protect borrowers’ finances when the unexpected impacts their vehicle. For instance, Guaranteed Asset Protection (GAP) and Power Equity Protection (PEP) ensure borrowers’ finances are protected in the case of an accident that leads to a total loss or it being stolen and never recovered.
- Keep your borrower on the road with options like Major Mechanical Protection (MMP) and Maintenance Benefit Agreements (MBA). MMP can protect their finances from the burden of unexpected repairs and replacements, while MBA provides a cost-effective way to manage vehicle maintenance. Both programs allow your borrowers to take proper care of their investments without hurting their wallets.
- Your members can choose the best option for them with flexible coverage options, tailoring it to fit their specific needs and budget.
Let SWBC Help You Drive Income
Auto loan protection products are just one of many non-interest income-generating offerings your credit union can present to borrowers. SWBC’s expert pit crew offers a suite of products that protect your auto loan portfolio, boost member satisfaction, and most importantly, help you race toward success. Learn more about how we can help you here!
