Credit union leaders are optimistic on auto growth, report finds
On the heels of a record-breaking year of auto growth for credit unions, credit union leaders are now evaluating how they can continue to offer the best rates to consumers amidst high inflation, rising rates, supply chain disruption and high auto prices. With Transunion projecting auto originations to increase ~5 percent year-over-year, credit unions must be prepared to tackle the inefficiencies in their current processes to best serve their members’ needs during this time.
Especially as credit unions experience a drop in mortgage volume, auto loans present an opportunity to supplement that lost volume. While first-mortgage balances fell to $565.3B as of December 31 and new mortgage applications are 58 percent lower than last year due to significantly higher rates, credit unions continue to gain share in the auto loan market. As of December 31, credit unions held $493.1B in total automobile loans, up 20.2 percent year-over-year. Credit unions grew both new and used car loans, which increased 21.6 percent and 19.4 percent year-over-year, respectively.
- Given continued credit union growth in auto, Upstart conducted a survey of over 50 credit union executives to capture their perspectives on the state of their auto lending business today and where it’s headed in 2023. The findings have been published in a report titled: 2023 Credit Union Auto Lending Outlook. Below are some of the main findings.
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