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.
As the prices for new and used cars edge higher, more consumers are opting to ride off the dealership’s lot in a leased vehicle.
Since January 2008, the share of liquid deposits in credit unions increased 11.2 percentage points and now stands at its highest level ever at 67.5%.
It may be hard to truly gauge whether the majority of members are feeling skepticism toward signs that an economic recovery is well on its way.
CUNA Mutual says member demand for both new and used vehicles is up due in large part to the aging vehicle fleet at dealerships.
For the first time ever, the average savings balance at credit unions moved past the $9,000 mark.
In his conversations with industry leaders, credit union economist Dave Colby said he has detected skepticism about an economic recovery.
While Bank Transfer Day helped to boost membership to record numbers, the industry could see an exodus of some of its more profitable members in 2013 if credit unions are not capitalizing on those relationships.
CUNA Mutual economist urges CUs to support new members
The 2012 series begins Jan. 18 with session on fixed income markets.