The impact of COVID-19 on the auto lending industry

by Mike Moore, SWBC LenderHUB

One of the greatest things about my job here at SWBC, and as a former lending executive, is that I get to speak with financial institution leaders, more specifically, credit union lending executives, on a regular basis. In recent weeks, unfortunately, a lot of the conversations I’ve been having have not been as upbeat as we would typically like. And, that’s primarily because of the effects of the COVID-19 outbreak on many parts of our organizations, but more specifically, significantly declining levels of auto loan originations and loan growth in the credit union space. None of us truly know the long-term impact of COVID-19 on a macro-economic scale, but in today’s blog post, I’ll share a few specific ways that we’ve seen COVID-19 impact the auto lending industry.

I’ve pondered a few questions when it comes to the impact of COVID-19 on the auto industry:

  • How do we get back to the levels of originations that we’d like to see that will allow us to hit our goals?
  • How do we separate ourselves from the rest of the lenders that are in our various footprints?

 

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