The auto business is steadily rebounding from the early days of the pandemic, but financial uncertainty remains a concern for many car buyers. As new and used vehicle prices continue to rise, borrowers are turning to long term auto loans and balloon payments in an effort to keep their monthly payments low and insulate themselves in the midst of these ever-changing times. While low payments are attractive in an unstable economy, extended term financing options typically come with higher interest rates and result in the borrower paying more for the vehicle over the duration of the loan.
Keystone Lending Alliance wants to equip our borrowers with the resources they need to buy with confidence and make sound financial decisions. We’ve partnered with Insurian to offer a Vehicle Return Program (VRP) that provides our credit union borrowers with peace of mind that they can be freed from their auto loan payments if they experience one of these life changing events:
• Involuntary Unemployment • Physical Disability • Loss of Driver’s License Due to Illness or Injury • International Employment Transfer • Permanent Change of Station (Military) • Self-Employed Personal Bankruptcy • Accidental Death
The option for borrowers to return their vehicle and have their loan reported as paid in full instead of a costly repossession is huge! Customers can keep their credit score intact so future borrowing is possible and less expensive, and lenders are protected against missed payments and defaults which means more credit availability at better rates for consumers.
When a vehicle return is initiated through the program, the difference between the vehicle’s value and higher remaining loan balance is covered, and the lienholder is made whole. An optional one-time 3-month payment benefit is available as well if the borrower believes their life event will be short-term and wants to keep the vehicle. If this option is utilized, the vehicle return protection remains intact for future life events.
Paul Budvitis, founder and CEO of Insurian, reinvented and repositioned a similar product in 2009 called Hyundai Assurance. Hyundai Assurance was released at the height of the economic crises and greatly increased Hyundai’s sales when other manufacturers were struggling. The notable contrast in sales volume indicates how important products like these are to customers in times of economic uncertainty.
Here is a note from Insurian’s Chris Meacham:
“This past year has seen more change in the auto and member lending business than ever before. Our industry is presenting challenges that we have not needed to address in the past. That said, there are also a few glaring opportunities to grow in these changing times. The customer experience has NEVER been more important than today. Additionally, the member value proposition needs to be higher than in the past to meet the expectations of the current auto buyers. Here at KLA, we equally realize that our value proposition to our dealer base also needs to evolve.
We are very excited with our VRP product offerings and believe it will help our dealers increase the customer experience, help ease the fear and trepidation that our current economic environment has created, and help further drive the profitability of your business. We believe we owe it to our dealer body to make it easier for you to thrive in our new business environment.
We look forward to discussing in further detail how VRP can help you make more money, can help generate more sales, and can help sell more of your current products that are crucial to your growth and financial well being! Please reach out for next steps.
The customer experience, is there anything more important?”
Chris Meacham, Partner Insurian
Offering valuable products helps build brand loyalty as members will return to your credit union for their next loan if they feel they were given the tools needed to increase financial security and navigate through unforeseen life events.
About KLA Keystone Lending Alliance knows that we are living in unprecedented times and wants to protect our borrowers and credit unions against the unexpected. We believe that Insurian’s VRP will provide peace of mind and financial security to our borrowers in a time they need it most. For more information about Insurian’s VRP or our proven credit union solutions, please email lending@kla.us.com or give us a call at 724-934-3394. Click the link above to learn more about who Keystone Lending Alliance is and the benefits we provide our credit union and dealership partners.
Keystone Lending Alliance, LLC 6021 Wallace Road Ext. Suite 100 Wexford, PA 15090 724-934-3394 (p) | 724-934-3389 (f) www.keystonelendingalliance.com
About Insurian Insurian was formed in 2015 with a goal to revolutionize consumer protection products for auto dealers, credit unions, and financial institutions. Founder, Paul Budvitis, and Chief Strategy Officer, Keith Whann, recognized that consumers were struggling to make auto payments due to falling on hard times. Pre-pandemic statistics revealed that approximately 11M to 12M people lose their job each year and over 1.2M people become disabled and cannot work. In addition, hundreds of thousands of people lose their driver’s license as a result of a medical impairment, are transferred internationally or die accidentally. This is what inspired them to create the Vehicle Return Program, backed by Hanover’s “A” rated Nova CLIP. Click the link above to learn more about their suite of products with unique benefits for auto industry professionals.
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