Despite a 7.5% increase in auto sales over the past 12 months,credit unions are not enjoying the uptick in related lendingactivity.

BrianTurner, director of advisory services at Catalyst StrategicSolutions, an investment subsidiary of Catalyst Corporate FederalCredit Union, said credit union vehicle loans have increased a modest 0.2% so far this year. An8.3% drop in new vehicle loans has been offset by a 5.5% increasein used vehicle loans, Turner added.

In October, U.S. auto sales increased to an annualized pace of13.2 million units, the highest level in more than nine months,according to Turner. Light truck sales fueled much of the increaseas stability in fuel prices met with both consumer and commercialdemand to replace older vehicles, he added. Sales of trucks roseabout 9% with SUV sales increasing 8%.

Turner cited Edmunds.com data that showed since 2007, theaverage age of vehicles nationwide has climbed from 9.8 years to10.7 years.

“In fact, the auto industry has not experienced a robust sale ofnew vehicles since 2005 when manufacturer incentives were pairedwith a stronger economic environment and open wallets,” hesaid.

NAFCU Chief Economist Tun Wai said vehicle sales have shown strong growth during thepast two months owing to pent-up demand, increased manufacturerincentives and the release of new models.

“October provided a second consecutive encouraging report forvehicle sales, but the market still sits below what analystsconsider to be a healthy sales figure, and further improvements areexpected to be gradual,” Wai said based on NAFCU's latest MacroData Flash report.