Source: Experian
The automotive lending market appeared to generate a perfectly positive storm for credit unions as 2018 came to a close. Consider the following:
- Automotive lending is up overall – total loan balances grew to a record-high $1.178 trillion in Q4 2018, up from $1.129 trillion in Q4 2017.
- Subprime lending remains below 20% – subprime and deep subprime loan market share fell from 19.87% in Q4 2017 to 19.69% in Q4 2018.
- Average credit scores for both new vehicle loans (715) and used vehicle loans were up (659).
These trends – a hot market, a shift to prime lending and high-credit customers – all play into credit union strengths. After all, credit unions tend to focus on prime lending for their typical customer.
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