Entering 2024, it's important for credit unions and their leadership teams to have a firm understanding of the large trends in the automotive industry. Staying current on industry trends can greatly impact credit unions' auto loan portfolio strategies as they begin to plan throughout the year.

After a difficult sales environment in 2022, the automotive industry showed noticeable recovery in 2023. Even as supply chain issues have continued to dissipate, new challenges emerged, including the ongoing threat of a potential recession, persistently high inflation, and the effect that global conflicts are having on supplies of vehicles and parts. These issues may make consumers think twice before investing in new and used models in the near future. Furthermore, the United Auto Workers' labor strike could impact supply and prices further, and the government's decision to resume student loan re-payments may place additional pressure on sales of new vehicles, especially for younger consumer demographics.