Newspaper article THE JOURNAL RECORD

Despite Credit Crisis, Tulsa's OAG Builds National Auto Loan Network

Newspaper article THE JOURNAL RECORD

Despite Credit Crisis, Tulsa's OAG Builds National Auto Loan Network

Article excerpt

While many lenders put the brakes on auto loans, a little-known Tulsa company intends to green-light deals across the nation, building a new dealer chain in the process.

OAG Indirect owner Jared Kasper is building two networks, one of participating credit unions willing and able to back loans generated outside their membership, and one of auto dealers seeking another financing outlet.

"He's coming with the right product at the right time," said Randy Oliver, who owns the Tulsa auto dealership Overdrive Automotive Center. "I think he'll do fantastic."

In September Tulsa-based OAG Indirect decided to expand beyond its Kansas and Oklahoma base to take its dealer programs nationwide.

OAG provides the digital platform bridging the two, organizing and filtering applications originated by the dealers so that participating credit unions may pick and choose from those that fit their lending criteria and goals.

"It's opened up our base for lending and hooking us up with dealers," said Lori Knight, a loan officer with EquiShare Credit Union of Wichita, which has used Kasper's firm since its inception.

Web automation allows OAG to move on applications within seconds.

"We work directly with credit unions to assist them in creating and employing direct auto loans," said Kasper, who launched OAG four years ago as Approved Auto Loans. He changed its name to OAG Indirect in July 2007. "We do due diligence on dealers to make sure credit unions get good quality dealers."

For consumers, Oliver said OAG opens doors to credit that many lenders closed with October's financial meltdown.

"He gets a lot of people loans at a prime rate that otherwise would have to be looking at their own financing," he said. "From the lender side, they're getting a larger spread than they would get if a guy walked in there themselves. So it's advantageous for the dealer as well as the customer as well as the bank. It's truly a win- win-win situation."

Drawing most of its current strength from Kansas credit unions, OAG now claims loan resources of $150 million, revolving participating credit unions to keep lines up. He taps that capital with a 2,000-member dealer network across the 48 continental states, 80 percent of those independent used-car lots.

"I hope to get that to 9,000 by the end of the year," said Kasper, whose firm just signed Tulsa-based Payless Car Sales, a subsidiary of Avalon Global Group Inc.

His credit union ranks also are growing, although due to confidentiality agreements Kasper could not provide numbers. …

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