In 0% Environment, Credit Unions take 16.8% of Auto Loan Market

Data from 26 states show that in June 2002, credit unions captured 16.8% of the auto loan market. This number is impressive considering the 0% financing that auto manufacturers are offering. Interestingly, market shares varied greatly between states

 
 

Data from 26 states show that in June 2002, credit unions captured 16.8% of the auto loan market. This number is impressive considering the 0% financing that auto manufacturers are offering. Interestingly, market shares varied greatly between states with Colorado at the top holding a 32.2% share and Mississippi coming in last with a 6.5% share. In these states, credit unions originated a higher percentage of used cars loans (18.0%) than new (15.3%) due to manufacturers' incentives.

In the entire auto lending market, consisting of both loans and leases, credit unions held a 15.2% share. This drop in share stems from the low participation by credit unions in auto leasing programs, evident in their 1.1% share. Overall, only three of the 26 states had shares over 2% and six states had no credit union auto leases whatsoever.

This market share information, now available to credit unions through a partnership between Callahan & Associates, Credit Union Direct Lending (CUDL), and AutoCount, a provider of auto lien data, enables credit unions to measure their impact at the state, county, and dealer levels.

Credit Union Leaders
Some of the more interesting data points include Security Service FCU ($2.5 billion), which originated the highest number of credit union loans in the nation courtesy of their top positions in both Texas and Colorado. SSFCU originated a total of 4,678 loans in June.
Navy FCU, the nation's largest credit union ($16.4 billion), had loans in all 26 states, originating 2,909 loans and 144 leases in June. 112 of the 144 auto leases were in Virginia, giving it 5.5% of the entire state's lease market.

The credit union with the highest market share in any state was State Employees Credit Union of North Carolina, the nation's second largest credit union ($9.1 billion) with 3.8% of the North Carolina market. SECU originated almost four times as many loans as its nearest credit union competitor, with a total 2,155 loans. This dominating presence gave it a 37% credit union auto lending market share.

Credit Union Auto Financing Market Share
June 2002
 
 
State
Total CU Market Share
CU Share of Auto Loans
# of CU Lenders
CU Share of New Auto Loan Market
CU Share of Used Auto Loan Market
CU Share of Auto Lease Market
Total # of Auto Loans & Leases Originated in State
CO 28.0% 32.2% 298 26.4% 35.4% 2.2% 25,899
MN 25.1% 27.9% 554 21.3% 29.7% 1.1% 42,898
MT 22.3% 22.9% 99 14.5% 26.4% 0.0% 3,869
IA 21.9% 22.9% 298 17.5% 24.7% 0.0% 22,543
WI 21.7% 24.4% 372 16.0% 30.9% 2.0% 33,705
WA 21.1% 22.3% 298 16.7% 25.2% 0.7% 32,940
NM 20.7% 21.3% 119 17.2% 24.8% 0.0% 10,040
ID 19.0% 20.0% 129 19.3% 20.5% 0.3% 5,681
IN 18.5% 20.4% 349 20.4% 20.5% 1.9% 37,655
TX 17.2% 17.8% 1,073 19.1% 15.9% 1.8% 207,469
CA 17.1% 19.9% 816 16.4% 23.2% 1.2% 184,985
SC 14.6% 15.3% 211 13.4% 16.6% 0.3% 21,709
MI 14.4% 20.3% 507 16.4% 24.1% 1.9% 63,263
FL 14.1% 16.2% 543 16.0% 16.3% 0.8% 123,702
VA 13.8% 14.2% 469 13.1% 15.1% 6.1% 46,686
TN 12.4% 13.1% 617 11.5% 14.0% 0.2% 46,487
MD 11.8% 12.4% 318 11.4% 13.7% 0.5% 33,425
WV 11.4% 11.6% 178 12.3% 11.1% 5.1% 10,398
MO 11.2% 11.9% 286 9.7% 13.2% 0.1% 27,863
NE 9.8% 11.0% 107 9.7% 11.7% 0.0% 9,682
LA 9.7% 10.9% 245 10.9% 0.0% 0.0% 14,176
NC 9.5% 10.2% 379 9.0% 10.8% 0.1% 61,452
OH 9.4% 11.6% 647 11.2% 11.8% 0.0% 78,397
IL 9.3% 9.9% 579 8.7% 10.8% 0.1% 75,792
KY 8.5% 9.5% 174 9.0% 9.9% 0.1% 17,406
MS 6.2% 6.5% 181 8.0% 5.8% 0.0% 21,426
Average 15.2% 16.8% 379 15.3% 18.0% 1.1% 48,444
         
Total   9,846   1,259,548
               

 

 

 

 

Sept. 30, 2002


Comments

 
 
 
  • Thanks - hot topic for our ALCO and Board. Scott Townsend, CIO Macomb Schools and Gov Credit Union
    Anonymous
     
     
     
  • good article. this data is extremely useful. thanks.
    Anonymous
     
     
     
  • Piqued my interest but then I was left wanting more detail on success stories and what I could specifically do to enhance my lending process
    Anonymous