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Indirect lending programs enable members or nonmembers to apply for financing with a credit union at their auto dealership. Credit unions with these programs have experienced greater auto loan and membership growth.
Data from Callahan's First Look program shows credit union's loan-to-share ratio hitting 74.6%, its highest levels in 2 1/2 years. Mortgage and auto lending helped boost loans for the participating credit unions 4.4%, while shares grew at a much slower rate of 2.0%.
Credit unions set a new auto lending market share record in June, originating 17.9% of the nation's auto loans. As the incentive wars continue to keep volume high, credit unions are looking the keep the momentum going.
May, credit unions originated 17.6% of all auto loans, tying a record for auto lending market share. Recent slow sales have brought another round of sweet incentives that should bring consumers to the dealer lots and hopefully to your credit union.
The Fed's rate hike last week should bring credit unions an additional $70 million in investment income from their short-term cash investments in the last half of 2004.
Does your auto loan portfolio need a jump start? Hundreds of credit unions are now creating or partnering with vehicle purchasing services for their members. Not only are the members happy to save time and money, but credit unions are happy to originate the loan!
In the 1st quarter of this year, NCUA revamped the Real Estate Loans section
of the 5300 call report in order to take a closer look at the complete real
estate loan breakdown for the industry.
The nation’s credit unions picked up market share against the captives, banks, and finance companies in April, pushing their collective auto loan market share to 17.5%.
Declining margins depressed earnings for the nation’s financial institutions in the 1st quarter as interest rates remained at record lows. The net interest margin for credit unions fell to 3.33%, 45 basis points lower than the average bank.