Annual vehicle loan portfolio growth rose to 10.4% in July,which was the strongest growth since September 2005.
|Back then, manufacturers were pushing “buy like an employee”price discounting rather than subsidizing financing rates, wroteDave Colby, chief economist at CUNA Mutual Group, in the company'sSeptember Credit Union Trends Report, which tracked data throughJuly.
|At $69 billion, new vehicle loans were up 17% above their early2012 low, but remained 24% below their January 2007 peak, accordingto the trends report.
|A closer look at detailed Call Report data showed 60% of thegain in total vehicle loans from the second quarter of 2012 to the secondquarter in 2013 was accounted for by the expansion of indirect loanportfolios, Colby noted.
|Looking back to last year, Colby said he noted the milestone ofnew vehicle loan growth turning positive for the first time inalmost five years. That portfolio segment was up 11.9%year-over-year or 7.0% year to date, he added.
|Used vehicle gains drove one-third of total credit union loangrowth. This segment is up 9.6% since July 2012 and 6.5% year todate, the data showed.
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