RE: Innovative Car Sales Strategy
Credit Union Name: LOCO CU
Location: Alamogordo, NM
Asset Size: $66 Million
Field of Membership: Community Charter
CEO: Deanna Schlensing
LOCO Credit Union located in Alamogordo, New Mexico has developed an innovative and effective car sales strategy that benefits local car dealerships, the credit union, and the community it serves. This unique approach involves hosting two yearly car sales events in the credit union’s parking lot that attracts both car buyers and potential new credit union members.
On a bi-annual basis, LOCO CU converts its parking lot into an outside car marketplace. Local car dealerships bring their vehicles to the credit union’s lot, creating a one-stop shopping experience for car buyers. This method eliminates the need for car buyers to travel to multiple dealerships, making the shopping process more convenient and efficient.
This is a win-win strategy for dealerships as they gain increased visibility and higher sales volume by showcasing their inventory in a high-traffic area. LOCO CU benefits from increased loan applications, processing over $1 million in loans during the event. Also the members and community enjoy the experience and convenience of having multiple car options in one location and the support of on-site credit union services.
During vehicle sale events, both the dealership staff and credit union reps are available to assist customers. They facilitate answering questions, opening accounts, and processing loan applications. The hands-on approach ensures that car buyers receive the support they need to make educated decisions and secure affordable financing on the spot.
To make the car sale events more appealing, LOCO CU incorporated additional family fun attractions, such as food trucks and hotdog stands. These efforts turn the car sale into a community event, drawing larger crowds. The events are advertised via radio ads, social media, and flyers distributed during local festivals. This marketing strategy not only drives attendance but also enhance the credit union’s visibility in the community.
A crucial element of the car sales strategy is the strong relationships LOCO CU has built with local dealerships. Although LOCO CU does not participate in a formal indirect auto lending program, dealerships often refer customers to the credit union. This trust-based relationship is mutually beneficial: dealerships can rely on LOCO CU to provide fair and flexible financing options, and the credit union gains new loan opportunities.
In the philosophy of people helping people, LOCO CU is committed to helping members with lower credit scores secure auto loans. The credit union strives to approve as many loans as possible by utilizing risk-based lending and pricing strategies. This wholistic, compassionate approach has helped many members obtain reliable transportation who have been turned down by other financial institutions.
The bi-annual car sales events have proven to be highly successful for LOCO CU. The credit union consistently processes over $1 million in loans during each event and experiences significant growth in new memberships. These events not only boost the credit union’s loan portfolio but also strengthen its ties with the community and local businesses.
LOCO Credit Union’s innovative car sales strategy exemplifies how creative thinking and strong community relationships can drive success. By hosting car sales events, LOCO CU supports local dealerships, provides valuable services to the community, and achieves impressive growth in loans and memberships.
The above profile was curated from LOCO Credit Union: “Innovative Car Sales Strategy”, a submission in the Blueprints for Small Credit Union Success published by America’s Credit Unions – March 2024