It may not give them an edge over their competitors, but if credit unions stick to what they know when it comes to pricing for vehicle lending, it could pay off in the long run in building return and profits.

Brian Turner, director of advisory services at Southwest Corporate Investment Services, a wholly owned CUSO of Southwest Bridge Corporate Federal Credit Union, offered that suggestion as the industry grapples with record low new vehicle lending activity. It remains to be seen what the impact will be after Toyota and other Japan- headquartered auto manufacturers recently announced they may have to suspend production at plants in the United States in the aftermath of the earthquake and tsunami.

"Credit unions must stick to their principles when it comes to pricing. Some have ventured into presuming a shorter duration on their vehicle loans while retaining the same pricing spread," Turner said. "This lowers their offering rate and significantly reduces the return and profitability on this product sector, oftentimes for no reason."