Modest Growth in Auto Loans
At best, modest loan growth is the most credit unions are experiencing even as auto sales increased by 8% in September.
Vehicle loans outstanding have increased a modest just 0.2% through August, according to the latest data from CUNA. A 9.4% decline in new vehicle loans was offset by a 6.1% increase in used vehicle loans.
“Given the sales report, it is clear that the credit union industry continues to lose market share,” said Brian Turner, director of advisory services at Catalyst Strategic Solutions, an investment subsidiary of Catalyst Corporate Federal Credit Union.
“This was more recently supported by the Federal Reserve’s report on nonrevolving credit which showed that credit union market share had fallen from 9.3% to 9.1%,” he added.
Turner said September auto sales increased 8% to a 13.1-million annual unit pace helped along mainly through truck sales which generally have higher average sticker prices. Truck sales accounted for 46% of total sales while domestic cars account for 32% last month.
Sales of domestic light motor vehicle sales were relatively steady in August at a 9.4-million rate versus July’s 9.5-million pace, according to Turner. Combined domestic and imports sold at a 12.1-million unit rate in August.