New & Used Auto Loan Growth

These 10 credit unions turned in dramatic growth in their auto loan portfolio despite renewed competition.

 
 

At June 30, auto sales year-to-date were up 16.7%, according to Motor Intelligence. Captive financers are getting more aggressive with 0% rate deals and other promotions to capture a greater share of the auto market.

According to Experian Automotive, credit unions, in aggregate, hold 15.2% of the total auto market. This is down from a peak of 22.7% in January of 2009. But this weighted average hides variations at the state level. New Jersey credit unions holds jus 2.7% of their auto market share while credit unions in Utah have captured 42.0% of their market, according to the 2Q 2010 edition of Credit Union Strategy & Performance.

Below are the top 10 credit unions in total auto loan growth that also had growth in both new and used autos. Seven of these 10 participate in indirect auto lending networks; only Realtors (MD), Benchmark (TX) and Kunia (HI) do not, according to 5300 filings.

Top 10 Credit Unions in Overall Auto Loan Growth
Credit Unions $10M+ in assets | new and used auto growth > 0%

Rk

St

Name

Overall
Auto
Growth

New
Auto
Growth

Used
Auto
Growth

Auto
Loans /
Total Loans

Total
Assets

1

MD

REALTORS

382.20%

204.70%

429.71%

18.25%

$72,709,038

2

MI

FIRST GENERAL

228.38%

88.77%

262.23%

76.12%

$56,309,205

3

PA

SUPERIOR

201.21%

11.98%

270.88%

40.50%

$36,729,108

4

MN

FINANCIAL ONE

196.91%

182.01%

205.50%

53.67%

$63,478,758

5

CT

FIRST CONNECTICUT

153.78%

136.01%

159.39%

60.84%

$36,027,277

6

TX

BENCHMARK

139.95%

3.52%

199.44%

82.65%

$16,797,774

7

CT

LEDGE LIGHT

132.86%

29.15%

339.50%

18.23%

$206,603,785

8

MI

COMMUNITY ALLIANCE

92.78%

42.27%

139.17%

31.23%

$70,796,404

9 HI KUNIA 90.13% 66.05% 109.52% 76.36% $16,369,824
10 WI A-B 86.44% 96.41% 83.28% 17.17% $53,938,893
Source: Callahan & Associates’ Peer-to-Peer.
For more information on how to identify other leaders, call the Callahan Analytics Team at (800) 446-7453.
 

 

 

Oct. 6, 2010


Comments

 
 
 
  • I read this prticle and was curious to see if the increased auto lending was doing much for their bottom line; only two credit unions had healthy ROAs and they (Benchmark and Kunia) were very small and NOT using indirect loan programs. the other credit union not using indirect appears to be buring through its capital rapidly and for other reason I suspect (look at their expense per employee).
    rmb
     
     
     
  • While we have held our loan growth (65% autos) to only 40%, we have not used indirect, as our business model calls for a personal close, and agressive collections. Our target market is mid to low credit score members (our median score in the area is 566) and we have a weighted average loan rate of 10.7%. Our model works great, as we have a ROAA of 2.4% or so and rising. (Net worth also grew 25% annualized as of June.) Unless NCUA suceeds in forcing us to change our business model and only make loans to A and B tier borrowers (and be in competition with all the indirect lenders and banks, we will continue to exceed our goals and serve our members. (We ARE a low income cu and a CDCU.) I hope there IS room for more than one business model in credit unin land, as we won't survive otherwise.
    Bill Wade