The used car market is a “goldmine” now for credit unions, according to one analyst who is encouraging CUs to strengthen their relationships with dealerships to help them move a growing inventory of used cars off their lots.
CU Direct COO Bob Child told CUToday.infoseveral lanes have merged to help turn around the fortunes of the used car market in 2018.
“A number of things have happened this year, some expected and some not,” said Child. “One thing that is no surprise is interest rates have continued to go up. They will probably go up again before the year is out.”
When those rising rates are coupled with a sharp pullback on new car incentives from the automakers and moves by several big banks—including Chase and Wells Fargo—to back off the gas pedal on car loans, the result is increased costs on new cars for consumers, Child explained.
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