Indirect Loans Drive Auto Loan Growth in First Quarter

3.8 million vehicles were sold in the U.S. in the first quarter of 2005. Find out how credit unions performed and which states had the highest credit union market share during this same period.

 
 

Indirect Loans Drive Auto Loan Growth in First Quarter

Credit unions increased their total auto loan balances by $1.5 billion in the first quarter of 2005. New auto loans grew $700 million while used auto loans grew $800 million. Last year total auto loan balances grew by $2.1 billion in the first quarter.

A driving force behind this increase has been indirect lending. Indirect loans outstanding reached $53.7 billion and now make up 33.5% of all auto loans versus just 18.1% this time last year. Indirect loan balances grew by $1.6 billion. This outpaced direct auto loan balance increases because members were paying their direct auto loan balances off at a faster pace.

The majority of indirect loans have grown from direct relationships between credit unions and dealers. Point of sale indirect loans totaled $35.4 billion, while loans generated from partnerships with third parties consisted of $18.3 billion in loans outstanding.

For the auto industry in general, credit union market share increased from 15.3% at year end to 15.5% of all auto loans. While this is about a percentage point less from last year, credit unions in many states are steadily increasing their portion of the auto lending market.

Credit Union Auto Lending Market Share at 1st Quarter 2005
Source: Callahan & Associates, AutoCount USA
State
Total Market Share
Total Loan Share
New Loan Share
Used Loan Share
Total Lease Share
UT
38.2% 41.1% 21.5% 47.4% 0.7%
HI
36.4% 38.2% 34.5% 40.6% 0.2%
OR
35.9% 36.8% 27.7% 40.1% 0.0%
WA
28.4% 29.7% 25.0% 31.6% 0.1%
CO
26.9% 30.1% 21.7% 34.3% 0.4%
MN
23.5% 25.5% 11.2% 28.5% 3.8%
NM
22.3% 22.8% 22.0% 23.3% 0.0%
WI
21.7% 24.4% 10.2% 32.8% 1.3%
IA
21.4% 22.9% 10.6% 26.9% 0.8%
MT
21.4% 22.0% 7.7% 26.9% 0.7%
AZ
20.9% 22.1% 14.5% 26.0% 1.3%
SD
20.6% 22.5% 12.3% 25.9% 0.2%
MA
19.5% 21.9% 12.3% 29.2% 0.4%
ME
19.1% 20.0% 12.4% 24.2% 0.0%
IN
18.9% 20.6% 17.0% 22.0% 0.7%
ND
17.8% 18.2% 6.0% 24.3% 4.5%
VT
17.4% 20.0% 12.1% 27.2% 0.0%
TX
17.4% 17.8% 20.0% 16.2% 4.6%
ID
16.3% 17.4% 15.3% 18.7% 0.0%
CA
16.1% 18.6% 15.2% 22.0% 0.7%
AL
15.9% 16.6% 11.8% 18.2% 1.5%
OK
15.4% 15.7% 10.9% 18.3% 0.0%
NV
15.2% 16.9% 12.5% 19.1% 0.2%
TN
13.6% 14.3% 9.6% 16.4% 0.3%
VA
13.4% 13.7% 10.7% 15.9% 5.1%
NY
13.3% 14.8% 8.1% 19.9% 0.2%
FL
12.6% 14.3% 12.2% 15.7% 0.6%
SC
12.5% 12.9% 12.9% 12.9% 0.3%
NC
12.3% 13.0% 10.4% 14.2% 0.2%
MI
12.1% 21.4% 12.2% 27.6% 0.5%
MD
12.0% 12.6% 9.9% 15.6% 0.8%
LA
11.8% 12.4% 9.9% 15.4% 0.0%
MO
11.5% 11.8% 7.7% 14.0% 0.0%
OH
10.6% 12.7% 9.7% 14.4% 0.3%
NE
9.5% 10.5% 7.0% 12.2% 0.0%
IL
9.0% 9.5% 7.0% 10.8% 0.6%
WV
8.4% 8.6% 6.1% 10.3% 0.0%
CT
8.0% 9.4% 5.1% 14.4% 0.0%
GA
7.2% 7.5% 5.9% 8.5% 1.2%
KY
7.0% 7.7% 5.8% 8.8% 0.1%
MS
6.5% 6.6% 7.5% 6.4% 0.2%
AR
5.0% 5.0% 5.1% 4.9% 0.0%
         
Wtd. Average 15.5% 17.1% 13.1% 19.4% 0.8%
 

 

 

May 30, 2005


Comments

 
 
 
  • To Whom It May Concerns: I am interested in applying for an Auto loan for the car that I just bought. Could you please help me? Thank you, Leslie
    Anonymous