Auto Loan Growth Floors It!

As second quarter trends emerge, the data continues to show that the quarter was a successful one for auto lending. Among First Look credit unions, auto loans grew an impressive 3.98% this past quarter.

 
 

As second quarter trends emerge, the data continues to show that the quarter was a successful one for auto lending. Among First Look credit unions, auto loans grew an impressive 3.98% this past quarter.

The table below was developed using preliminary data from Callahan & Associate's First Look program and represents the top ten credit unions in auto loan growth over the three-month period. These credit unions experienced stronger loan growth without sacrificing loan quality: the delinquency ratio, though slightly higher than the average First Look credit union, is still quite respectable.

What has helped these credit unions grow their auto loan portfolio? Notice that of these top 10 credit unions, 9 offer indirect lending programs. The indirect loans granted year-to-date comprise a large percentage of the total loans originated year-to-date. In fact, almost one-half of total loan originations were from indirect lending. Compare this with the average First Look credit union whose indirect lending program accounts for approximately ten percent of total loan originations.

 

 

 

Aug. 11, 2003


Comments

 
 
 
  • IAA would make an interesting case study. How did they achieve such high growth withou any indirect lending?
    Anonymous
     
     
     
  • Guys, Let's remember that stats are relative. I pulled down IAA's 5300 to determine for myself "how they did it." They're traditionally a mortgage shop.....only $13 million in new and used auto loans a/o 3/31. So they slashed rates like we all did and put on $3 million....that's a 23% increase. We're $44 million and hold $12 million in automotive paper....they just haven't been an automotive shop, that's all. Joe Mariani, CEO Sunfirst FCU Syracuse, NY
    Anonymous
     
     
     
  • So how DID IAA do it?
    Anonymous