Auto lending has always been at the heart of the value credit unions deliver to their members. Even with recent declines, auto loans account for 29% of credit union portfolios and an even greater percent of credit union loans. But with the recent turbulence in the marketplace from a drop in auto sales to the recent re-emergence of other lenders to new norms in the auto buyer's behavior, CUs must take a closer look at how they can be more competitive.

As the economy begins to slowly right itself, new vehicle sales have continued to rise in 2011, and with a 20% gain in sales between the first quarter of 2010 and the first quarter of 2011 (according to CNW Research), credit unions have a vital opportunity to grow their auto portfolios. At a time when fees such as courtesy pay and interchange are coming under pressure, the importance of auto lending to credit unions' bottom line is only magnified. To take advantage of the improving marketplace and increase lending opportunities, credit unions need to incorporate strategies and programs that will effectively give them an advantage over competing lenders.

As always, one of the most powerful–and unique–tools in the credit union arsenal is the special relationship between a credit union and its members. Credit unions' ability to recapture market share and grow auto loan portfolios depends largely on their ability to enhance member loyalty and retain member loans.