Wednesday, Jul. 19, 2006, 08:00 PM UPDATED 11:59 AMBy Nick Zulovich
HOUSTON (July 20, 2006) -- Auto Financial Group, an online provider of residual-based financial products for credit unions, announced it has teamed up with Credit Union Acceptance Co. Under the deal, CUAC will offer AFG's Driving Sense vehicle balloon financing product to credit unions and their members.
According to company executives, Driving Sense is an easy-to-use, Web-based program that allows credit unions to substantially improve their vehicle loan product offerings. AFG helps to remove the financial risk of an auto loan for a credit union by guaranteeing a predetermined residual value of a vehicle through third-party insurance. This, in turn, allows the credit union to compete with traditional loans and conventional leases, executives pointed out.
Through the partnership, CUAC will offer AFG's Driving Sense program at the credit union member's point-of-sale through a dealership's finance department.
"Our partnership with CUAC is an exciting development," said Richard Epley, president of Auto Financial Group. "CUAC works with more than 1,500 auto dealerships across seven states, so this agreement quickly makes Driving Sense available to a large number of credit union members who are applying for vehicle financing."
Adrian Dominguez, president and chief executive officer of CUAC, added, "CUAC is excited about this new relationship with AFG. The AFG balloon product provides the credit union member the payment flexibility that they desire in this increasing rate environment. It also provides the credit union the opportunity to capture loans that they would have otherwise lost."