WASHINGTON — Although auto lending continues to be a strong area of credit unions' loan portfolio, making up the second largest lending category, and 85% of all credit union auto loan growth came through indirect lending, many CUs still question whether indirect lending is a viable option for them.

In fact, according to data from Callahan & Associates, only 20% of CUs include the service as part of their loan program.

One of the challenges CUs have to deal with before implementing an indirect lending program is deciding what type of program to offer and how to introduce it. Credit unions also want to know if the subprime market is an area they should include in their indirect lending program, and if so, how they should manage the risks.

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