Thanks to a number of favorableconditions for members, credit unions could see their total vehicleloan portfolio surpass $200 billion by the end of the year.
The industry reached that mark at the end of October, accordingto CUNA Mutual Group's December Credit Union TrendsReport, which tracked data through October.
|Since October 2012, the $20.3 billion increase in vehicle loans held by credit unions has accounted for nearly49% of all credit union loan growth, the report noted.
|New vehicle loans were up 12% year-over-year through October.While this portfolio segment was up $12 billion or 21% from itsearly 2012 low, it remained almost $20 billion (22%) below itsearly 2007 peak, according to the trends report.
|Meanwhile, the used vehicle portfolio continued to expand, withthe segment accounting for 19.9% of all credit union loans throughthe end of October and 31% of all credit union loan growth duringthe past year.
|CUNA Mutual Chief Economist Dave Colby said credit unions arepoised to build on momentum gained this year going into 2014.
|“While sustaining the 2013 rate of growth will be a challenge,we will enter 2014 with considerable momentum, significantly moremembers, low interest rates and an improving economic andemployment outlook,” Colby said.
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