PenFed Credit Union Signs Agreement with Auto Financial Group

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Mar 06, 2019, 11:00 ET

HOUSTON, March 6, 2019 /PRNewswire/ -- Auto Financial Group (AFG) announced today that Pentagon Federal Credit Union (PenFed), the second largest federally chartered credit union in the United States based on assets, has signed on to AFG's Residual Based Financing Program. The partnership with PenFed further reinforces AFG's mission to expand into new markets to meet the rising consumer demand for residual based financing. AFG's Program will be available to PenFed's member base of 1.8 million.

"The AFG program will allow us to extend residual based financing to a greater number of vehicles than our prior program. We will therefore be able to expand low monthly payment financing options for our members during a time when auto industry trends are pushing the limits of affordability," says Ivan McBride, Vice President of Automotive Lending Products & Sales at PenFed.

The program allows PenFed to provide residual based financing for new and up to five model year old vehicles, while AFG manages the residual value risk and the vehicle turn-in process, making the processes more convenient for members.

"We are excited to welcome PenFed to the AFG family and look forward to contributing to their success and exceeding their expectations with AFG's superior customer service," said Richard Epley, CEO of AFG. To learn more about the AFG's Residual Based Financing Programs, please visit https://www.autofinancialgroup.com/products/

About Auto Financial Group

Auto Financial Group (AFG), a Houston-based company, provides an online, residual based, walk-away vehicle financing product called AFG Balloon Lending, as well as vehicle leasing and vehicle remarketing to financial institutions across the United States.

AFG's residual based financing solutions provide the advantages of lower payments, flexible terms, in the case of the balloon loan, actual ownership of the vehicle and several end-of-term options, including the option to surrender the vehicle and walk away in lieu of paying the final loan payment. The financial institution receives higher loan yields, a competitive residual based financing alternative, and AFG manages the entire end-of-term process.

The AFG Remarketing program is a proven solution for financial institutions that offers the greatest financial return to their clients by matching assets to the selling network with the greatest number of buyers.

For more information about AFG call toll free at 877-354-4234, or visit www.autofinancialgroup.com

About PenFed Credit Union

Established in 1935, Pentagon Federal Credit Union (PenFed) is America's second-largest federal credit union, serving 1.8 million members worldwide with $25 billion in assets. PenFed Credit Union offers market-leading certificates, checking, credit cards, personal loans, mortgages, auto loans, student loans, and a wide range of other financial services with members' interests always in mind. PenFed Credit Union is federally insured by the NCUA and is an Equal Housing Lender. To learn more about PenFed Credit Union, visit PenFed.org, like us on Facebook and follow us @PenFed on Twitter. Interested in working for PenFed? Check us out on LinkedIn. We are proud to be an Equal Employment Opportunity Employer.

SOURCE Auto Financial Group