Are auto sales a CU sore spot?
If you look at the aggregate numbers for the credit union industry they remain solid. But that doesn’t keep me from living up to my reputation of having a glass half empty kind of guy.
I’ve been concerned for a while now that the industry is growing too dependent on auto loans and my concerns will be tested if current trends continue. Yesterday it was reported that auto sales fell for the first time in eight (8) years. If this is a blip reflecting an inevitable slow down after years of record growth, then it’s no big deal but if car sales declining becomes a trend then you will see an impact on the industry. I took a look at the latest NCUA statistics and currently loans for used cars grew 11.8% last year and 13% for new cars.
Cuomo: Fed Government Out For Blood
A fired up Governor Cuomo kicked off what promises to be one of the most challenging legislative sessions the state has experienced in years with a State of the State speech attacking the Federal government for attacking New York and promising to sue the Federal government for singling out the state in the recently approved tax plan which capped the deduction for state and local taxes. Here’s a sample of what the Governor had to say, “Washington has launched an all-out direct attack on New York state’s economic future by eliminating full deductibility of state and local taxes. What this is going to do, is this effectively raises middle class and working family’s property tax 20 to 25 percent all across the state. It raises their state income tax 20 to 25 percent all across the state. There is no conceivable justification. New York is already the number one donor state in the nation.”
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