Auto Sales Rebound Still Slow to Trickle to CUs
While auto sales in September increased 8%, credit unions are still experiencing modest loan growth.
Vehicle loans outstanding have increased a modest just 0.2% through August, according to the latest data from CUNA. A 9.4% decline in new vehicle loans was offset by a 6.1% increase in used vehicle loans.
“Given the sales report, it is clear that the credit union industry continues to lose market share,” said Brian Turner, director of advisory services at Catalyst Strategic Solutions, an investment subsidiary of Catalyst Corporate Federal Credit Union.
“This was more recently supported by the Federal Reserve’s report on nonrevolving credit which showed that credit union market share had fallen from 9.3% to 9.1%,” he added.
Turner said September auto sales increased 8% to a 13.1-million annual unit pace helped along mainly through truck sales which generally have higher average sticker prices. Truck sales accounted for 46% of total sales while domestic cars account for 32% last month.
Sales of domestic light motor vehicle sales were relatively steady in August at a 9.4-million rate versus July’s 9.5-million pace, according to Turner. Combined domestic and imports sold at a 12.1-million unit rate in August.
“Motor sales slowed notably in 2008 and 2009 due to the depth of the recession. A short-lived recovery boosted sales in late 2010 and early 2011 before economic growth sputtered again,” Turner said.