Credit union auto loans grew to almost $180 billion in 2006. Indirect lending took an even larger share of the portfolio at year-end, climbing to 39.3% (see charts Total Auto Loans and Total $ of Indirect Loans). In 2004, indirect loans were 33% of the credit union auto loan portfolio. Indirect lending has become a key source of auto loan growth among credit unions, rising 8.4% to $70.9 billion in 2006.
Credit unions captured 16.5% of the auto finance market in 2006. At the same time, the average auto loan balance has gone up 28% since 2000(see chart Average Auto Loan Balance).
At year-end 2006, 17.3% of members held an auto loan at their credit union, up from 15.5% in 2000 (see chart Total Auto Loan Penetration).
To learn more about auto loan strategies in the current market, visit Re-strategizing in a Slowing Auto Market: Successful Loan Recapturing Programs.