Skip to main content

Total auto loan balances at credit unions have more than doubled since the third quarter of 2012

A proud sponsor of NCOFCU

Auto lending at U.S. credit unions was relatively robust in the third quarter despite rising interest rates and slowing growth in the loan portfolio.

Up 10.8% annually, total auto lending expanded $35.8 billion over the year to $365.3 billion as of Sept. 30, 2018. This is the sixth consecutive year of double-digit growth in the third quarter. Total auto loan balances at credit unions have more than doubled since the third quarter of 2012, and auto lending continues to be strong despite growth slowing and interest rates rising in the overall loan portfolio.

Credit union auto market share has grown 5.9 percentage points in the past five years to 20.6% as of Sept. 30, 2018. With the largest market share of any major loan product, auto loans are essential to balance sheet growth at credit unions.

  Growth in indirect lending continued its three-year decline and was down 3.8 percentage points year-over-year to 15.5%. Still, the financing option remains a major origination pipeline for credit union auto loans. Growth in indirect lending has outpaced total auto lending growth for the past seven years.

Although the average auto loan balance is on the rise, credit unions have effectively managed delinquency. New auto loans have the lowest delinquency — 0.39% — of any lending product at the nation’s member-owned financial cooperatives, and total auto delinquency decreased 5 basis points over the year to 0.60% as of Sept. 30.

Strong vehicle sales in 2018 underpinned performance in the credit union loan portfolio. The National Automobile Dealers Association projects 2018 will be the fourth straight year of more than 17 million unit sales nationwide and is forecasting 16.8 million unit sales in 2019. However, amid a rise in new car prices, consumer demand is shifting from new cars to used ones.

A rise in off-lease used cars and lightly used vehicles are combining to increase the supply of used cars and depress their prices. Elsewhere, SUVs continue to grow in popularity, and some major automakers are refocusing their product line. Ford, for example, has announced plans to stop manufacturing sedans and coupes, except for the Mustang, and produce only SUVs and trucks in North America.



Comments

Post a Comment

Please no profanity or political comments.

Popular posts from this blog

Let the Truth be Told - Why a New NCUA Rule Could Jolt Credit Union Innovation

The National Credit Union Administration has finalized a rule to improve board and executive succession planning within the credit union industry. This strategic move aims to curb the trend of mergers driven by technological stagnation and poor succession strategies, ensuring more credit unions maintain their independence and enhance their technological capabilities. By Ken McCarthy, Manager of marketing communications at Tyfone Credit unions are merging out of existence because of an inability to invest in technology, the National Credit Union Administration Board wrote when introducing its now finalized rule on board succession planning. The regulator now requires credit unions to establish succession planning for critical positions in their organizations. But it’s likely to have even wider effects, such as preserving more independent charters and shaking up the perspectives of those on credit union boards. “Voluntary mergers can be used to create economies of scale to offer more or ...
Post a Comment
Read Complete Article HERE>»

Speakers & Sessions For NCOFCU 24 San Antonio TX.

National Council of Firefighter Credit Unions Inc (NCOFCU)  Speakers and Schedule! It is the National Council of Firefighter Credit Unions (NCOFCU) "GO TO Conference" for credit unions serving first responders! Who should attend? CEO's, VP's Directors and Staff See What's Planned Register Here! Bring your spouse, bring a guest to enjoy San Antonio, TX River Walk 4 Days Golf 16 + Sessions Alamo Reception Closing Dinner Right on the San Antonio River Walk Several Networking events Open Forums Idea Exchange Events Panel Discussions of CU Leaders National & Industry Speakers Trends in First-Responder Credit Unions Director & Volunteer Sessions Exhibitors ShowcaseAnd  So Much More! HOTEL REGISTER HERE
Post a Comment
Read Complete Article HERE>»

Armand Parvazi MBA CUDE - Last Friday marked his last day with New Orleans Firemen’s Federal Credit Union.

It’s been an incredible journey, but it’s bittersweet to announce that Friday marked my last day with New Orleans Firemen’s Federal Credit Union. We've accomplished so much together in my six years as Chief Administrative and Development Officer. Some of the highlights: Implemented a data-driven marketing strategy that delivers over 1,800% annual ROI. Developed automated triggers to ensure members receive the right offers at the right time. Grew assets by 61% and increased products per new member from 1.88 to 2.62. Converted online banking to enhance the member experience. Introduced a loan origination system for faster and more efficient loan processing. Transitioned to a mobile-first financial institution to meet members where they are. Pioneered the first Cancer Care loan pause program in the nation (in collaboration with Andy Janning ) Secured nearly $17 million in grants for our impactful work. Expanded our field of membership to 35 parishes and counties and added numerous fi...
Post a Comment
Read Complete Article HERE>»