Consumers with subprime credit scores captured more than 25% of all U.S. auto sales, according to CUNA Mutual auto lending expert Steve Hoke, who also laid out ways credit unions can capture a greater portion of this potentially valuable loan market.
Hoke, CUNA Mutual Group's Director of Loan Growth Products, told attendees of the insurer's Discovery Conference on Oct. 21 that by ignoring the auto loan needs of members with subprime scores, they'll risk losing them to other institutions.
"Subprime customers took out $129.5 million in auto loans during the first 11 months of 2014, which represents more than one quarter of all U.S. auto sales, the highest level since before the Great Recession," Hoke told the online audience. "If you aren't reaching out to your members and potential members with an auto loan offer at a competitive rate, then you are basically telling them to go elsewhere."
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