Credit Unions See Steady Auto Loan Market Share Growth: Callahan

Callahan reveals fluctuations in credit union auto lending business trends from the past decade.

The credit union auto lending portfolio has doubled in the past six years, from $177.7 billion in the third quarter of 2012 to $365.3 billion in the third quarter of 2018.
Credit unions’ market share in the three major loan categories – auto, mortgage, credit cards – all rose in the past year, and the financial cooperatives now claim more than one-fifth of all U.S. auto loans.
The delinquency rate for new auto loans among America’s credit unions is consistently one of the lowest rates of any loan product.
More than one-fifth of all members now have auto loans at their credit unions, continuing a steady rise in penetration that began in 2012.
Indirect loan balances grew 15.5% year-over-year in the third quarter of 2018, a 3.8 percentage point deceleration from the rate posted in the third quarter of 2017.
The overall delinquency rate for auto loans at U.S. credit unions has remained steady over the past five years, alleviating fears of a potential auto bubble.

Source: Callahan’s Peer-to-Peer Analytics

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