Search
 

Auto Loan Growth: Looking Back to Plan the Future

Aggressive loan rates, lease payment options, looser underwriting and cash reward incentives line a path to 2016 lending success.

By Frank Rinaudo | Updated on January 31, 2016
auto loan growth plans for 2016In 2015, the automotive industry had its best year in more than a decade. Industry analysts are predicting another banner year for car buying in 2016; the economy is strong and the U.S. auto industry is looking to shatter its previous production records. GrooveCar polled 75 credit unions from across the U.S. to discuss areas of loan growth, terms, opportunities and member online research habits, as well as posed the question: How do you plan on attracting members in 2016?

Overall, credit unions polled experienced increased growth over 2014. The largest group, one third of the credit unions, reported increases in the 5% to 10% range, followed by 17 credit unions reporting a 0% to 4% increase over 2014. Of the remaining credit unions, 12 witnessed a 10% to 15% growth, and 10 reported growth of 15% to 25%. Interestingly, seven credit unions experienced growth of 25% or higher, while another four actually saw a decrease since 2014.

Those polled reported they saw the highest growth in pre-owned and used vehicles, followed by new vehicle purchases and leasing. While leasing remains the single greatest area of growth for many credit unions, its success is confined to large populous regions. Leasing on a national level accounts for 28% of new car sales, however in some regions of the nation, that number can be as high as 60% or more.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper

Recommended Stories

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2024 ALM Global, LLC. All Rights Reserved.