Credit unions continue to bask in the glow of their record auto lending growth, but an increase in subprime repossessions may be a cause for pause.
Total up $103 billion from year-ago third quarter, credit bureau data shows.
Second quarter repos drop almost 15%, credit bureau says.
The lending environment is undergoing an evolution. The continual entry of new players—especially on the Internet—has sharpened competitive knives that are cutting into credit union income. Business loans are an avenue for lenders to travel, since non-interest income is becoming so critical to survival.
There are more signs that consumers are back at the dealerships where they’re not only buying new vehicles but signing leases as well.
In first quarter 2012, credit unions had 16.7% market share compared to 15.5% for finance companies, 10.7% at buy here/pay here lots.
Unlike mortgages and business loans, for many financial institutions, including credit unions, auto loans are probably the least likely to have a flood of new competitors entering the space.
With a year-long track record of strong portfolio performance, used car loans continue to rev up a turbo boost for many credit unions.
A former Fiserv Inc. vice president has been named a partner with the Phoenix-based consultancy CCG Catalyst.