5 Facts Every Credit Union Should Know About Auto Lending In 2015

Auto lending hit an all-time high in March 2015. What should credit unions know to keep up with the changing auto lending landscape? Find out in this graphic of the week.
Stephanie Clark

Auto lending soared in the first quarter of 2015. Thanks to a healthy auto market and rising members’ demand for cars, auto lending now makes up over 32% of credit union’s loan portfolios. The number of indirect, new, and used auto loans reached 25.3 million as of March 2015. That’s a 2.6 million increase year-over-year.

FIRST QUARTER AUTO MARKET SHARE
For all U.S. credit unions | Data as of 03.31.15
Callahan & Associates | www.creditunions.com

Source: Auto Count

First quarter market share increased 1 percentage point year-over-year, reaching 16.3% in March 2015. This is the credit unions highest point since 2009, where they experienced an auto market share of 20.7%.

NEW AND USED AUTO
For all U.S. credit unions | Data as of 03.31.15
Callahan & Associates | www.creditunions.com

Source: Peer-to-Peer Analytics by Callahan & Associates

New and used auto balances grew 16.8% in 2015, reaching $239 billion. Credit unions added over 1.5 million auto loans to their portfolio year-over-year, growing the number of outstanding loans to 18.0 million as of March 2015. The average loan balance as of March 2015 was $13,292, up from $12,547 in March 2014.

DIRECT VS. INDIRECT AUTO LENDING
For all U.S. credit unions | Data as of 03.31.15
Callahan & Associates | www.creditunions.com

Source: Peer-to-Peer Analytics by Callahan & Associates

Direct and indirect auto lending grew year-over-year reaching a total balance of $238 billion. Indirect lending has become more popular among credit unions in recent years, now on par with direct auto lending.

INDIRECT LENDING
For all U.S. credit unions | Data as of 03.31.15
Callahan & Associates | www.creditunions.com

Source: Peer-to-Peer Analytics by Callahan & Associates

Indirect landing grew at a rate of 22.3% between March 2014 and March 2015, its highest growth rate since March 2006. Indirect lending balances have hit an all-time high of $119 billion, with an average loan balance of $16,247.

Rank State Credit Union Growth Assets
1 CA San Diego County 128.74% $6,905,956,228
2 MI Dow Chemical Employees 97.14% $1,501,213,241
3 PA TruMark Financial 86.45% $1,632,296,037
4 VA Northwest 85.63% $2,834,472,116
5 IL Alliant 83.78% $8,320,374,695
6 TX American Airlines 82.94% $5,707,160,404
7 WI Connexus 81.06% $1,081,805,707
8 CA Ventura County 80.47% $725,499,888
9 MI Team One 78.21% $430,502,376
10 CA Premier America 66.28% $1,770,793,553

*Credit unions included in the leader table had a minimum of $50 million in auto loans as of March 2014 and if they had merged in the last year had a merger rate of less than 10%.

Credit unions are experiencing record breaking growth rates in their new and used auto portfolios. This is a result of a strengthening economy and favorable rates for credit union members.

August 3, 2015

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