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Which state posted the greatest increase in new auto loan market share?
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April 21, 2011
Andrew--thank you for this article and your March 28th piece on CU auto loan share.
I did seize on one sentence in today's post that got my attention... "Auto loans do not necessarily build strong member relationships, and the market place is competitive." Might I suggest that USED AUTO LENDING might just be the best way for CUs to build a relationship with Gen Y!
Notice that I said a USED AUTO LOAN. For the third year in a row, Deloitte's Automotive Gen Y Survey revealed that over 70% of Gen Y said they would opt for a USED AUTO. And yet, most every article I see in the CU "trades" seems to focus on the fact that CU "new" auto loans are "down"(because of stiff competition from the captives and banks). But USED AUTO lending is up! I say GREAT!
If 7 out of 10 Gen Y auto buyers will be buying USED, isn't this a prime opportunity for CUs to begin a relationship with this most sought out demographic? And to do so via their "first" life event. I can tell you from personal experience(I sold cars for a year), that car dealers forget about a customer the minute they take the wheel of a new or used car.
May I also suggest that CUs support that USED AUTO purchase by offering more resources "after the sale"...like car care and repair. And affordable USED CAR pre-inspections should be of great value to Gen Y and their parents (who might very well be co-signing for the loan). Most CU Auto Centers offer resources geared more for NEW AUTO purchasing.
From what I read, waiting til college age to connect with Gen Y is way too late. Credit unions have a golden opportunity to connect with Gen Y via their first "life event"...an auto loan. And there is a 70% chance that loan with be for a USED vehicle.
2014 Credit Union Performance In 7 Chart...
Industry Performance (3Q 2015)
Which state posted the greatest increase...