Affordability has moved from an industry concern to a daily reality for car buyers and dealers alike. Rising prices, higher interest rates, and stretched budgets continue to reshape the automotive finance landscape. Experian’s Q3 2025 State of Automotive Finance report underscores the pressure: more than 15% of new-vehicle payments now surpass $1,000, while average monthly payments remain well above $750. Pre-owned vehicle payments are climbing, too, with extended loan terms of 73 months or longer increasingly common as dealers work to keep payments manageable.
For dealerships, these trends highlight a simple truth. Selling inventory is no longer just about selection or incentives. It is about flexibility in financing. Payment shock can derail even the most motivated buyer, and without the right lending options in place, deals stall. To stay competitive, dealers need solutions that adapt to consumer realities without slowing down the process or eroding profitability.
Why credit unions matter now more than ever
In a market defined by cost sensitivity, credit unions stand out as a powerful affordability partner. Their member-first approach and competitive pricing, within their financing strategies, have built long-standing trust with consumers, a quality that carries real weight as buyers adjust to higher rates and tighter budgets. When monthly payments are under scrutiny, even modest savings can influence where consumers choose to finance.
Experian data supports this advantage. On average, credit unions deliver $77 lower monthly payments on refinanced auto loans compared with other lenders. That difference can ease household budgets and create long-term loyalty. Beyond refinancing, credit unions remain a vital force in indirect lending, helping dealers close transactions with terms designed to support member value rather than maximize margins.
For dealers, this translates into more productive conversations in the showroom and the finance office. Offering credit union financing is not just another option on a rate sheet. It signals credibility and care for the customer’s financial well-being. In an environment where every dollar matters, that trust can be the deciding factor.
Remove friction with technology
Credit unions bring real value to dealers, and access is becoming easier than ever. Instead of juggling multiple relationships, contracts and systems, dealers can now streamline the process and keep deals moving without added strain on staff.
Today’s technology allows dealers to connect with hundreds of credit unions nationwide through a single agreement. This unified approach reduces administrative overhead, speeds onboarding and simplifies workflows. Tools such as eContracting and same-day funding help cut down contract-in-transit time, limit errors, and keep deals moving efficiently from approval to funding.
Dealers must assess whether their current technology partners are expanding or limiting their financing options. Each day without seamless access to credit unions is a missed opportunity. Credit unions are the key to unlocking more deals in your F&I department.
Changes coming to F&I: What’s next?
Several emerging developments are poised to further strengthen the dealer–credit union relationship. One of the most notable is the growing use of artificial intelligence (AI) in lending. Many credit unions are adopting AI-driven decisioning models that look beyond traditional credit scores. These tools allow for more nuanced evaluations and can expand approval opportunities for borrowers who may not fit conventional profiles.
Credit union financing strategies are expanding. Increasingly, credit unions are offering leasing programs alongside traditional financing, giving dealers alternatives beyond OEM-backed options. These programs can improve affordability for consumers while supporting healthier trade cycles, helping dealers build repeat business and longer-term customer relationships.
Staying informed about these shifts allows dealers to align affordability with operational efficiency. Leveraging innovative lending models and streamlined processes creates room for growth without adding friction to the buying experience.
The road ahead
Affordability pressures show no signs of easing, and success will depend on strategies that blend trusted lending partnerships with technology built for speed and simplicity. For dealerships, connecting to credit unions through an integrated platform is more than a convenience. It is a competitive advantage.
The question moving forward is straightforward: Do your financing strategies include options flexible enough to meet today’s buyers, and is your operation efficient enough to keep pace? Dealers who can answer yes will be better positioned to navigate today’s challenges and tomorrow’s opportunities.
Ready to see what your dealership could achieve with more approvals, same-day funding, and fewer stalled deals? Let’s talk about bringing credit union financing into your F&I workflow—contact us today.
