Auto loans continue as a mainstay of credit union service tomembers, but as much as things stay the same, they're alwayschanging, too.

For instance, new car balances are growing as a proportion ofthe total market, and more strikingly, perhaps, indirect lending isbuilding its lead over direct lending in total balances in theindustry – new and used – after first nudging past it in the secondquarter of 2015. That's despite some misgivings among credit unionsabout the stickiness and quality of relationships with members anddealers alike.

Here at Callahan & Associates, we frequently get calls fromcredit union executives considering making the move into indirectlending, and I thought this would be a good time to share some ofwhat the data is telling us.