Bridge the gap between affordable monthly payments and new vehicle ownership. Give dealership F&I managers and payment-conscious buyers a viable solution while maximizing institutional yields.
The Problem:
New car prices are at an all-time high, making monthly payments out-of-reach for many new car buyers. Going from a new car to a used car purchase is often the only solution due to the monthly payment issue.
The Solution:
AutoLine offers a log-in “Equity Balloon Loan” calculator. The difference between a conventional lease or balloon loan is that the equity balloon balance is 50% below the vehicle projected market value. The result is a conservative loan, new vehicle ownership, and equity as the loan matures. In addition to the loan disclosure, the Balloon Loan Addendum outlines customer options including a. trade-in at loan maturity, b. keep with pay-off or refinance, or c. turn-in the vehicle and keep any equity with a check from the originating dealer. The credit union earns about 30% more interest revenue compared to a conventional loan due to a higher average daily balance.
Product Evaluation Summary
Evaluation Criteria
Exclusive indirect loan tool
Equity for the Customer
30% More Interest Revenue
New Car Payment Solution
Score
5/5
5/5
5/5
5/5
Context & Justification
The lowest payment option for the new car buyer market
50% below projected market value guarantees a conservative loan that locks in positive customer equity.
Maximizes yield cleanly; the slower principal reduction sustains a higher average daily balance throughout the loan lifecycle.
Keeps payment-shoppers in the new car market, earns dealer loyalty and sustains a healthy asset-based loan portfolio.
At AutoLine we are pleased to present, train and manage these innovative tools for the mutual benefit of our customers. Schedule a Teams or in person meeting today.
What is the downside?
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