Credit unions were responsible for financing 17.6 percent of all auto loans in May, the largest percentage since August 2004. This was the 5th consecutive month that credit unions increased their auto market share after dropping to 14.9 percent of the auto market this past January.
Of the 40 states that reported data to AutoCount USA, credit unions in 32 states increased their auto market share. California credit unions grew their market share the most in the past month by originating 20.3 percent of all their state’s auto loans, an increase of 3.4 percentage points. Credit unions in Utah still hold the largest share of their state’s auto market and in May they originated 43.1 percent of all auto loans.
Three credit unions are the largest auto lenders in their state. America First (UT), Portland Teachers (OR) and BECU (WA) hold this distinction in their respective states, beating out such giants as GMAC and Chase Auto Finance. Other credit unions were active in increasing their market share in May as well. Alliant Credit Union (IL) held a One-Day Car Sale on May 21st that resulted in nearly 100 vehicle sales and over $1.5 million in auto financing.
Auto sales will be strong in the summer as manufacturers offer employee discounts to the public. Partnerships with dealers and special finance sales are just a few ways that credit unions can ramp up their auto lending programs and become the leading auto lenders in their areas.