AFG’S BALLOON LENDING PROGRAM DRIVES SUCCESSFUL
RESIDUAL-BASED FINANCING FOR MISSOURI CREDIT UNION
STATE: MISSOURI
With $1.5 billion in assets, American Eagle Credit Union
(AECU), a division of Anheuser-Busch Employees’ Credit
Union, has 14 branches in the St. Louis, Missouri metro area
with 16 additional locations nationwide. Faced with a need
to increase its loan portfolio, the credit union was looking
to secure a partnership to provide innovative and sustainable
finance options for its loyal members.
Enter: Auto Financial Group (AFG). AFG is a Houston-based
company that provides online, residual-based financing
products. With a tenured presence in the auto financing
business, AFG embraces a relevant and collaborative
approach to customer relationships. The AFG Balloon Lending
and Remarketing Programs are anchored in a results-oriented
platform and consistently prove to be advantageous for
consumers, credit unions and dealers.
designed for today’s buyer and marketplace. When Tornatore
speaks with dealers about the Balloon Lending Program
versus traditional leasing, his experience and background
effectively communicate the value of the program.
Although leasing has long been considered the go-to option
for auto buyers, the truth is that the Balloon Lending Program
through AFG is similar in concept, only better.
THE SOLUTION
Win. Win. Win. That’s how Mike Tornatore describes the
tangible, tri-fold benefits for consumers, credit unions and
dealers. The 10-year relationship with AECU and AFG
doesn’t disappoint. When Tornatore first joined the credit
union, senior management was looking to increase sales and
member service in a post-recession environment. Today, the
AFG Balloon Lending Program has proven to be formidable in
both good and bad economic times.
THE OPPORTUNITY
Quite simply, credit union members wanted to purchase
vehicles with flexible terms and lower monthly payments.
This came in the form of an alliance between AECU and AFG.
Mike Tornatore, VP of Indirect Auto Finance at AECU,
understands the AFG Balloon Lending Program. The inherent
diversity of AFG’s offerings include specialized technology
In lieu of leasing, balloon lending has many layers and is
attractive to borrowers who want to:
•
•
•
•
avoid any initial cash outlay,
enjoy lower monthly payments,
retain title of the vehicle and
choose from end-of-term options that include the ability
to relinquish the car and walk away.
4550 Post Oak Place Drive, Suite 139, Houston, TX 77027 | 713.812.3333 | Toll Free: 877.354.4234
www.AutoFinancialGroup.com
Borrowers who trade vehicles every three to five years are
attracted to balloon lending. During the term of the loan,
they have flexible mileage options, no early payoff penalties,
local return possibilities, private auto insurance and realistic
residual values.
AFG, in tandem with AECU, leverages the knowledge and
experience needed to gain the loyalty of today’s savvy
borrower. With face-to-face training, web conferencing
options and on-site meetings with dealers, AFG continues to
redefine residual-based financing.
The AECU stage is set for success. Stay tuned for continued
excellence in 2015!
THE RESULTS . . .
are in! With outstanding accolades from all parties. From six
loans per month to 150, it’s fair to say AECU has experienced
a landmark increase in sales and member satisfaction. There’s
more. With $37 million on the books and a 5% net yield,
the credit union experiences less than 0.5% delinquency.
According to Tornatore, “The number of contracts versus the
number of applications is higher than ever before.”
Members are getting the cars they want with affordable
monthly payments and a multitude of electives throughout
the contract. AFG supports AECU through its internet-based
software that provides dealers with real-time inventory
data. So too, AFG supports all of its clients with continuous
training support. Sales professionals have the online tools
to match consumer needs, payment requirements and vehicle
availability at a glance.
About Auto Financial Group & Balloon Lending
Auto Financial Group is a Houston-based company that provides Balloon Lending, an online residual based auto financing product for
credit unions and other financial institutions. Auto Financial Group removes the financial risk to the credit union by guaranteeing the
predetermined residual value of the vehicle through third party insurance, as well as handling the vehicle’s disposition. For more information
about getting AFG Balloon Lending or connecting with a credit union offering Balloon Lending, call 713-812-3333 or toll free at 877-3544234, or visit www.autofinancialgroup.com.
4550 Post Oak Place Drive, Suite 139, Houston, TX 77027 | 713.812.3333 | Toll Free: 877.354.4234
www.AutoFinancialGroup.com