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Nearly 5,500 of the nation’s credit unions reported holding auto loans on their books in the first quarter of 2018. That’s 97% of the industry. These 5,485 credit unions held 23.5 million auto loans.
Credit union auto loans increased 10.8% year-over-year to reach $343.6 billion as of first quarter. Used auto loans jumped 10.0% year-over-year to total $207.8 billion. This segment represented 60.5% of the total loan portfolio. New auto loans increased 12.1% YOY and occupied the remaining 39.5% of the portfolio.
Auto was the industry’s second-most popular loan product, trailing only first mortgages, and accounted for 34.9% of the industry’s loan portfolio. Strong growth in both new and used auto lending underpinned the 9.7% growth the industry recorded in its overall loan portfolio. Indirect lending, which increased 16.6% year-over-year, also contributed to the industry’s top-line loan growth.
As of March 31, more than one in five credit union members held an auto loan with their credit union. Auto loan penetration for the industry was 20.6%. Three of the NCUA regions — Central, West, and Southeast — were above the national average. At 37.6%, Georgia reported the highest auto loan penetration of any state.