The bottom line for credit unions is that ride-sharing apps and self-driving cars are not expected to disrupt car ownership rates any time soon, so keep your auto lending momentum going. Here are a few things credit unions can focus on to boost their strategy in 2017, all of which were suggested by CU Direct President/CEO Tony Boutelle in a recent interview.

Maintain strong dealer relationships. Dealers already appreciate credit unions for their quick response times and reliable payments, but credit union executives could improve their dealer relationships by meeting with them to review reports or metrics on how their loans are performing, Boutelle noted.
Finance used vehicles coming off leases. Leasing peaked this year, with consumers leasing 30.9% of all new vehicles, up from 25.2% in 2014, CU Direct reported. Boutelle said while he recommends only the larger, more sophisticated credit unions get into leasing, all credit unions can benefit from the uptick by financing used vehicles that are expected to come off leases next year.
Keep an eye on your portfolio. The market will soften next year from a credit standpoint and there will be more auto loan delinquencies, Boutelle forecasted. That means portfolio and risk management will be critical. Credit unions should also be more responsive to the market when setting rates. "We see that when market rates move, credit unions are much slower to move, but that may not be good for the yield," he said.
Start looking to the distant future. Boutelle agreed that while ride-sharing apps and self-driving cars won't impact the auto lending industry any time soon, credit unions should begin pondering their role in these emerging markets. "We should be thinking about how to creatively serve [the self-driving car] market," he said. "Someone is going to have to finance it." He suggested some credit unions begin thinking outside the box now by financing Uber and Lyft vehicles.

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