Car dealers in Maine are looking to credit unions and other sources to provide third-party auto loans for their customers as banks shy away from auto financing, the AP reports.
As banks nationwide pull back from automotive lending, finance managers at dealerships have to search for other ways to get their customers a loan.
Turning to credit unions for automotive financing is helping struggling dealerships because the credit unions typically didn’t get involved in the mortgage crisis, so they still are able to loan money.
"They’re my new best friends," said Adam Lee, president of Lee Auto Malls. "They want to loan money, they have members who buy cars, and I have a bunch of cars I want to sell."
About seven out of 10 buyers finance their vehicles through a dealer, working with third-party lenders and the financial arms of car manufacturers, the AP reports. Not all banks have exited the third-party auto loan industry though.
So if you are shopping for a car and an auto loan, be sure to check your local credit union before you head to the dealer. They might be able to give you the best interest rate for your next auto loan.