• As credit union auto lending has stalled in 2007, coupled with a decline in captured market share, developing an effective strategy to remarket vehicles quickly and effectively is increasingly critical. In this Report, you will learn current auto lending trends, remarketing strategies, and best practices.

The report discusses trends in credit union auto lending, the remarketing industry, and the methods that credit unions currently use to effectively remarket vehicles. It includes an industry overview as well as proprietary data from a survey Callahan conducted of credit union auto lending programs.

The 2008 Vehicle Remarketing Report highlights best practices among credit unions in third party, in-house, and online remarketing efforts. The report features:

Auto Market Overview — Comprehensive overview of the auto market highlighting the latest data and trends

Remarketing Strategies — An in-depth look at the advantages and disadvantages of in-house vs. third party solutions

CU Profiles —Case studies of four credit unions who employed different vehicle remarketing strategies. Learn about the challenges they faced and the solutions they found.

Executive Summary......................................2 Market Overview............................................3 CU Remarketing Efforts..............................6 Vehicle Remarketing Strategies 3rd Party Vehicle Remarketing ….............7 In-House Vehicle Remarketing...............11 Utilize Online Auctioning...........................14 Case Studies Travis CU ....................................................9 Coastal FCU .............................................10 CommunityAmerica CU ….....................12 NSWC FCU …...........................................14 Conclusion ….............................................18 Leader Tables ….......................................19

• Total credit union auto loans outstanding declined 15 basis points during 2007 • Credit Union auto lending market share declined as well, to 14.7% for loans originated in 2007. • Repossessions increased 10% during the course of 2007 • 9% of credit unions surveyed reported an average loss per repossessed vehicle of greater than 10,000