Auto refinancing companies optimistic about future growth
A pair of firms that specialize in auto refinancing — iLending and Way.com — are optimistic about their prospects, especially if the Federal Reserve starts to lower interest rates this month.
iLending president Nick Goraczkowski described what it’s been like at the company since the Federal Reserve has held rates steady since last September, plateauing between 5.25% and 5.5%.
“iLending successfully weathered the storm that has been the past 18-24 months. Now we have high expectations that decreases in rates, controlled inflation and consumer pent up demand will drive our business onward and upward as we move from 2024 into 2025.” Goraczkowski said in a news release.
“Our investments in the customer journey, solidifying relationships with long standing as well as new lenders coupled with fantastic lead generation partners are brewing up a perfect storm for clients to save more money and regain financial certainty,” he continued.
Goraczkowski also pointed out that optimism is percolating since the annual inflation rate came in at 2.9% in August, the lowest since March 2021.
Goraczkowski said, “2023 was a fight and we pushed hard. While we had optimism late last and early this year for rate cuts in Q2, they did not materialize. Instead of sitting back, we simply continued the fight, invested in our people and processes and kept our focus on helping everybody we possibly could. Frankly, that’s just who we are.”
Over at Way.com, the company launched its auto refinance program a year ago and has partnered with credit unions across the country to provide the lowest rates possible for those looking to lessen a costly monthly payment.
One of its newest partners is Sea Air Federal Credit Union.
“Sea Air FCU is dedicated in providing opportunities to keep auto rates low and maximizing value on an array of auto ownership related expenses, from gas and EV chargers to parking. We are looking forward to our new partnership with Way that will expand these opportunities.” Sea Air Federal Credit Union CEO, Michael Pardon said in a news release from Way.com.
Way.com’s auto refinance program has helped customers save up to $1,850 a year on their vehicle payments by matching them with a finance company that will provide them with the best rate in the market.
“We are excited to join forces with Sea Air Federal Credit Union. Our shared commitment to helping Americans live more affordably makes this partnership a perfect match,” Way executive vice president of auto finance and insurance Tom Holgate said.
Way executive director of financial partnerships Steven Gordon added, “We are so thrilled to partner with Sea Air Federal Credit Union for several reasons. One of which is their ability to enhance families’ affordability in all 50 states, as well as their active support in assisting active and retired military members.”
Whether it is helping customers connected with the military or other parts of the economy, iLending is preparing for major growth since the company sees many credit providers are approaching the market with renewed optimism, focused on expanding their auto refinance portfolios.
Founded in 2006, iLending has facilitated $3.8 billion in paper, saving consumers an average of $148 per month on their car payments. iLending has helped more than 160,000 families save more than $255 million in payments or over 5% in interest rate reduction on average.
“As delinquency rates increased, lenders tightened borrowing standards to ensure cost recovery. A potential rate reduction in September could provide relief to credit unions and lending institutions, alleviating some of the pressure on funding costs and supporting a more stable financial landscape for all,” iLending director of lender relations Heidi McMillen said.