ONTARIO, Calif. -

Along with a separate alliance with Open Dealer Exchange, CUDL, administrators of one of the nation’s largest auto lending network for credit unions, recently announced a new initiative with Manheim’s OVE.com and GE Capital Fleet Services.

As a result of the new initiative, officials highlighted CUDL, OVE.com and GE Capital Fleet Services will cooperate to further expand GE’s remarketing channels and to offer to CUDL’s dealer network a new online vehicle buying program.

The new platform is slated to be rolled out during the second quarter.

Officials explained the new program will provide GE Capital Fleet Services with an upstream remarketing channel for its broad mix of quality vehicles that closely mirrors the in-lane buying experience, including robust bidding activity, as well as incentives for buyers.

At the same time, officials added the program will provide CUDL’s extensive dealer network the opportunity to bid in an online environment for selected GE Capital Fleet Services vehicles.
 
“Teaming with Manheim and GE Capital Fleet Services to offer this online vehicle buying opportunity adds an important component to our lending platform,” said Brent Hollingsworth, national director of strategic alliances at CUDL.

“Through this unique program, our dealer partners will have access to premier used car inventory online with this simplified method for buying vehicles,” Hollingsworth continued.

CUDL pointed out it has grown its national auto lending network to include 8,000 dealerships and 990 credit unions, serving more than 28 million members nationwide, reinforcing the important role credit union and dealer relationships are playing within today’s industry.

“We are excited about extending our relationship to CUDL’s network of dealers who are also Manheim customers,” shared Tom Nohstadt, vice president of commercial accounts at Manheim.

“Having our mutual dealer customers use our technology allows them to take advantage of the services and value that only Manheim and CUDL can offer while at the same time delivering to GE Capital Fleet Services the opportunity to augment its nationwide remarketing program with a strategic upstream channel,” Nohstadt stressed.

Paul Seger, vice president of asset remarketing for GE Capital Fleet Services, added, “Expanding our remarketing program to include an upstream channel with intense competitive bidding capabilities, extensive buyer exposure and buyer incentives makes a lot of sense for our diverse portfolio of vehicles. It’s a win both for our customers and for our buyers.”

Open Dealer Exchange to Integrate with CUDL

In other company news, Open Dealer Exchange recently reached an integration agreement with CUDL.

Through the new alliance, CUDL will be offering direct credit application and contract validation data integration from the dealer’s point-of-sale system directly to the CUDL system.

Officials contend the integration between lenders and dealers is fragmented and often times hostile and not necessarily secure. Because there is a break in workflow between a dealer’s internal dealer management system (DMS) and a lender’s back-end system, CUDL thinks the process is vulnerable to human errors with data entry, information syncing in multiple systems and improper security measures.

With a direct connection from Open Dealer Exchange, CUDL believe it can virtually eliminate these inefficiencies for its dealer network while providing process efficiencies to its credit union members.

“The agreement with Open Dealer Exchange allows our credit union members a more streamlined approach during the contracting process,” stated Tony Boutelle, Credit Union Direct president and chief executive officer.

“With our combined technology expertise, lenders will have access to critical information directly from the DMS, something that is tough to do today without the connection to Open Dealer Exchange,” Boutelle continued.

Open Dealer Exchange reiterated that it was founded in 2009 as a joint venture between ADP Dealer Services and The Reynolds and Reynolds Company and integrates a finance source or F&I product provider directly within an auto dealership’s DMS.

By eliminating the need for dealers to log into multiple systems or re-key data into various applications during a vehicle sale, Open Dealer Exchange think this process can result in increased operational efficiencies, reduced contract errors and a more streamlined process with a lender or provider’s franchised dealerships.

From within the DMS, dealers can send complete customer and deal information directly to CUDL then complete the credit application process within CUDL. They will also have the ability to perform contract validation on each deal directly from their DMS, which officials said can act like a spell-check to ensure all data is right the first time prior to being sent to the lender.

“Our agreement will enable CUDL to take their credit and contracting services to the next level, which is a step in the right direction for the industry as a whole,”  Open Dealer Exchange general manager Steve Luyckx emphasized.

“Dealers have had limited or costly connectivity between their lenders and their DMS, and this alliance bridges that gap and combines the strengths of each system,” Luyckx added.

To learn more about Open Dealer Exchange, visit www.opendealerexchange.com.

CU Direct Provides Shareholder Dividend

In yet more company news,  CU Direct Corp., parent for the CUDL, Lending Insights, Lending 360 and CUDL Retail brands, indicated the company’s board of directors approved a 3 percent cash dividend on the current share price of $1,000, totaling $1,395,450 to its 94 shareholders for the 2011 calendar year.

Executives pointed out this decision marks the seventh consecutive year that the CUSO has paid dividends to their credit union and credit union organization shareholders.

CU Direct, which has ten regional offices throughout the U.S., signed new agreements with 128 credit unions last year in an effort to maximize process and cost efficiencies. At year’s end, 990 credit unions, serving 28 million members, were utilizing the CUSO’s lending solutions to enhance their lineup of member product offerings and services.

Among the credit unions that signed agreements with CU Direct in 2011 to incorporate the CUDL brand’s auto lending solutions and services were:

—Bethpage Federal Credit Union
—Trumark Financial Federal Credit Union
—University of Virginia Credit Union
—University of Michigan Credit Union
—Genisys Credit Union
—Greenwood Credit Union
—Arizona State Credit Union
—New Mexico Educators Federal Credit Union
—Weokie Credit Union
—Meridian Trust Federal Credit Union

Executives went on to highlight CU Direct’s Lending Insights brand continued to experience growth last year by signing new agreements with 55 credit unions. Credit unions that integrated the brand’s analytical tools and business intelligence solutions included:

—Grow Financial Federal Credit Union
—Members Choice Credit Union
—Mazuma Credit Union
—Credit Union Student Choice Partners
—Prime Way Federal Credit Union
—Sierra Central Credit Union
—Members Cooperative Credit Union
—Kauai Community Federal Credit Union
—Big Island Federal Credit Union
—SB1 Federal Credit Union

In a year that saw credit unions gain back some marketplace momentum in a challenging economic climate, executives tabulated 1.75 million loans were processed through the CUDL lending platform in 2011, generating 484,000 loans at dealerships nationwide for $877.5 billion in credit union auto loans.

The company said this figure ranked CUDL credit unions as the eighth largest vehicle lender in 2011 in the U.S.

CUSO also reported that 33 percent of the loans generated through the CUDL system in 2011 went to existing credit union members at the point-of-purchase (in the dealership).

“We are pleased to be able to once again provide a return on investment to our shareholders in the form of a cash dividend,” Boutelle declared.

“Our continued goal is to provide credit unions with a member centric delivery channel and financial services tools that add value to credit unions’ relationships with their members and also helps them grow their loan portfolios,” he concluded.