Credit unions excel at meeting members’ auto loan needs
Since year-end 2017, credit unions have gone from financing 19.7% of auto loans on the market to 20.5%.
Total auto loans at credit unions expanded 10.1% year-over-year, the fastest of any major loan product, and added $34.0 billion to the industry’s total loan portfolio in 2018. By year-end, auto loan balances totaled $369.8 billion, with $220.9 billion, or 59.7%, coming from used auto loans and $148.9 billion, or 40.3%, coming from new.
The share of the credit union loan portfolio held by auto loans increased 34 basis points year-over-year to 35.0% as of Dec. 31, 2018. Since year-end 2017, credit unions have gone from financing 19.7% of auto loans on the market to 20.5%. By the end of 2018, one in five credit union members, or 21.2%, held an auto loan with their cooperative. That’s an increase of 74 basis points year-over-year.
Growth in new auto loans was up 11.7% in 2018; however, that is a slowdown of 1.3 percentage points year-over-year. Growth in used auto loans followed close behind at 9.1%, which also is a deceleration of 1 percentage point from the year prior. Despite slower growth in 2018, the average auto loan balance for the industry increased $265 since year-end 2017 to $14,834 by Dec. 31, 2018.
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