Used cars will drive 2019 auto lending
This is good news for credit unions that watch their underwriting and have strong dealer relationships.
Auto sales are still going strong in the U.S., with CU Direct and leading economists predicting a year-end total of 17 million vehicles sold, just slightly less than 2017 figures.
Strong auto sales have meant strong loan demand for credit unions this year. As of September 30, the CUDL platform had funded 1,045,840 loans in 2018, marking a 9.1 percent increase year-to-date (September 2018). Our 1,100 credit union partners on the CUDL lending platform, as an aggregate, remain the largest lender in the automotive marketplace for the second year in a row, according to AutoCount.
To underscore how strong credit union auto lending has been this year, No. 2 ranked lender, Ally, experienced a 7.5 percent increase, while three of the nation’s top 10 auto lenders Capital One Auto Finance (No. 3), Chase Auto Finance (No. 5) and Wells Fargo Dealer Services (No. 9) have all experienced loan decreases of 8.4 percent, 9.3 percent and 41.7 percent respectively through September, according to AutoCount. That’s a big win for credit unions.
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