At least four Georgia credit unions have joined 31 other credit unions nation-wide that have partnered with online car dealership Carvana in the last few months.
“Our model is aligned with credit unions,” said Chief Product Officer Dan Gill in a Credit Union Journal article. “We roll out our business one market at a time. We do targeted marketing in the geography where we are present. Credit unions tend to have geographically centered memberships. They also have a reputation for great service and great rates. We align with that credit union philosophy.”
(Credit Unions) also have a reputation for great service and great rates. We align with that credit union philosophy.
So far, Associated Credit Union, LGE Community Credit Union, CDC Federal Credit Union and Delta Community Credit Union have all partnered with Carvana. That means each CU’s pre-approved lending terms are applied to all of Carvana’s vehicles for those credit union members. If the consumer is pre-approved for up to $24,000 at 3 percent APR, Carvana applies that maximum approval amount with the possibility to pay cash for the difference if the buyer wants a more expensive vehicle, according to the CUJ article.
Carvana offers its own built-in financing for cars. But Gill stressed the company does not want to become a competitor for credit unions.
“Our founding philosophy is to put the customer in the middle of all our decisions. The customer experience is in mind,” he said in the CUJ article. “So many customers have a lending relationship that is meaningful, and of course they started their buying journey by getting pre-approved at their credit union. We do pre-financing that allows credit union financing, then we do a co-branded Carvana experience.”