Credit union auto market share declined from 15.5 percent in March 2005 to 15.3 percent in March 2006. After reaching a record high of 20.5 percent in August 2005, credit union market share declined as captives and other institutions began offering 0% financing and other incentives to lure consumers to finance their vehicle with them.
Nevertheless, credit unions have still been successful in growing auto loan balances. New auto loan balances increased 19.7 percent between March 2005 and March 2006 to $86.4 billion. Indirect loans outstanding rose 25.5 percent to $66.1 billion and nearly 1,700 credit unions reported having an indirect loan on their books.
In order to generate these loans and increase their market share, many credit unions are providing their members auto buying resources to help them through the entire auto buying process. By providing these resources, credit unions seek to have their members also use them when it comes time to finance the vehicle.
To learn more about what auto buying resources are available for members and how you can incorporate them into your auto lending program, check out our webinar entitled Providing Auto Buying Resources for your Members, sponsored by Credit Union Direct Lending.