On March 6, 2018, Credit Union Acceptance Company and Down East Credit Union, announced the official launch of their joint indirect auto lending venture. CULANE is a Credit Union Service Organization (CUSO), headquartered in Baileyville, Maine and will utilize CUAC’s dynamic loan origination technology, Dealertrack™ and Route One™ dealer application platform connection, best indirect lending practices, and expertise. Along with resources provided by Down East Credit Union, CULANE will help Credit Unions in the New England states grow auto loans.
The decision for CULANE to partner with CUAC was to provide improved dealership loan application platforms, without the burden of applicant double entry by participating dealerships. Additionally, with CULANE, owner and partner Credit Unions will approach participating dealers with a single rate schedule and loan policy, as to not compete with each other. Lastly, CULANE will offer weekend and extended weekday hours for loan application review, giving Credit Union partners a competitive advantage by servicing their members during these busy car buying periods.
The formation of CULANE is an excellent story of how collaboration between Credit Unions and CUSOs can lead the industry to a place of mutual success. In a business environment that is highly competitive, the CULANE and CUAC indirect lending models offer flexibility for participant Credit Unions and the ability for each to control their risk and the desired volume in a manner that leverages Credit Union membership, car-buying power, and lending muscle.
“I am enthusiastic in seeing this project come to fruition. CULANE will employ nine people at its start and service 11 Credit Unions and over 150 auto dealers across New England.” Says Daniel Daggett, Chief Executive Officer of CULANE. “As CULANE matures, we will strive to find partners who have or will embrace our no-barriers to entry approach to doing business, and expand our reach into all New England states.” Adds Daniel Daggett.
Adrian Dominguez, Chief Executive Officer of CU Alliance, expressed: “CU Alliance is very excited about the opportunity to collaborate with yet another CUSO partner in the indirect auto lending marketplace. CULANE is one more startup CUSO that CUAC has been a part of to offer in-market, world-class indirect lending for Credit Unions. We are fortunate to have such great partners like Joe Moses and Dan Daggett at Down East Credit Union, as we launch this new CUSO in the New England states.”