Two members walk into a credit union with nearly identical credit profiles. One wants a lightly used commuter sedan. The other has her eye on a truck that loses value faster than a dropped ice cream cone. Under a traditional rate sheet, both get quoted the same rate, because both land in the same risk tier. Credit Union of Colorado has decided that doesn’t make much sense anymore.
The credit union has selected LendSmart Auto, a new AI-powered auto loan pricing engine from Scienaptic AI, a provider of AI-driven credit decisioning. The goal is to move past tier-based pricing, where every loan in a risk bucket gets the same rate, and toward a model that prices each deal on its own merits. That means weighing the individual borrower, the vehicle securing the loan, and what the market is doing in real time.
The detail comes from the data. LendSmart Auto pulls in vehicle information at the VIN level, so it can examine depreciation curves, regional resale demand, projected auction recovery, and loan-to-value exposure for each loan. It also builds in Credit Union of Colorado’s own target return on assets, along with deal and operating costs. In plain English, the pricing can get sharper without wandering outside the credit union’s financial guardrails.
Chad Wilcox, Senior Vice President of Lending at Credit Union of Colorado, says the quote often decides everything. “In a competitive auto market, the rate we quote is often the entire conversation,” he said. “A tier-based rate sheet cannot tell the difference between two borrowers who look alike on paper but are buying very different vehicles. LendSmart Auto lets us price each deal on what is actually in front of us, so we can reward strong applications with sharper rates and hold the line where the risk warrants it. That is better value for our members and a healthier portfolio for the credit union.”
Courtney Mrsny, Chief Customer Officer at Scienaptic AI, pointed to the credit union’s long track record. “Credit Union of Colorado has spent more than 90 years earning the trust of members across the state,” she said. “LendSmart Auto brings deal-level intelligence to every vehicle loan, going beyond broad tier assumptions to a clear view of the individual borrower and the specific collateral. We are proud to partner with them and look forward to showing what that precision can do for their portfolio.”
If you’re shopping for a car loan, the practical lesson holds no matter who your lender is. Know exactly which vehicle you’re buying before you ask for a rate, and get quotes from more than one lender, including your credit union. Lenders are increasingly looking at the car as well as you, so the specific vehicle you choose can affect the rate you’re offered.