Credit unions cash in on auto credit boom

first_img ShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr CUs experience the biggest rise in auto loan marketshare.The automotive credit market has reached record-setting heights in recent months—and credit unions drove a big part of the boom.In addition to gaining market share, credit unions managed to create stability in their overall automotive portfolios with delinquencies and charge-offs, which are both significantly lower than industry averages.However, this lending segment did something that was slightly out of character during the second quarter. On average, credit unions increased their appetite for risk, delving further into the deep-subprime market than normal.Despite the slight change in behavior, credit union auto loans still go to consumers with higher average credit scores than loans from other lender types.During the second quarter, the automotive credit industry reached an all-time high for outstanding loan balances. According to Experian Automotive’s latest State of the Automotive Finance Market report, the total dollar amount of auto loan balances outstanding hit $839.1 billion, up 11.7% from the previous year. continue reading »last_img

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