Three months after Hurricane Sandy's destruction slammed severalstates, the storm may have contributed to a jump in loans for newcars at credit unions.
|This segment of the loan portfolio is up 7.7% or $4.6 billion asof November, according to CUNA Mutual Group's January Credit UnionTrends Report. The scenario was different in November 2011 whennew car lending activity was actually contracting at an 8.7%annual rate, the data showed.
|Both new and used car lending continued to lead the way in loan growth atcredit unions. The 7.7% annual growth rate for the total vehicleportfolio is the strongest since February 2006, according to thereport.
|“Member purchase demand and demand from loan recapture programsis keeping used vehicle loan growth solid. The 7.7% annual gaintranslates into $8.3 billion in additional loans on the books,”said CUNA Mutual Chief Economist Dave Colby. “Our forecastsindicate vehicle loan growth will continue to be a key driver ofoverall credit union loan growth well into 2014.”
|Auto lending has now increased in 18 out of the past 20 monthsas interest rates on new and used vehicle loans continue todecline, Colby pointed out.
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