Credit union auto-loan portfolios have seen an annual growth for the first time in more than six years, with their auto lending practices jumping to 5% from 2.3% last year, says CUNA Mutual Group’s September Credit Union Trends Report.
In addition, credit unions’ new-vehicle portfolios saw year-over-year growth for the first time in five years. The data showed that, in each of the past five months, new-car loans increased, but remained $30.1 billion (or 33%) under their peak in 2007, while used-car portfolios progressed to $7.4 billion (or 7%).
The data also showed that car loans now make up 29.2% of all loan activity at credit unions.
“Reports from credit union lenders across the country indicate improving demand for all vehicle loans,” said CUNA Mutual Chief Economist Dave Colby in the analysis. “The question remains: Is this just a temporary release of replacement demand or is it sustainable, provided the economy doesn’t falter?”