Auto Lending Biz Intel Report Finds CUs Still Holding Onto Auto Loans

RANCHO CUCAMONGA, Calif. - Credit unions held on to an 18% share of the auto lending marketplace during 2006, with CU members paying lowest average monthly payments on new vehicles, according to a report from Credit Union Direct Corp. (CUDL).

CUDL's first annual Auto Lending Business Intelligence Report also found:

* The 18% auto loan market share was a slight decline from 2005's record high of 19.3%, but was still higher than other years.

* Credit union members' average monthly new vehicle payment last year was $389, with an average $17,645 financed. Overall consumers relying on captive financing, paid an average $422 a month and financed $20,442, on average.

* Credit union members sought longer maturities for their new vehicle loans, with more than two-thirds of all new auto loans originated by credit unions last year having a maturity of longer than five years. "The finding mirrors that of all financial institutions," CUDL said, noting "55% of new auto loans originated by banks and captives also had maturities longer than five years."

* Indirect loans made up 39.4% of all credit union auto loans outstanding in 2006, and 80% of all net auto loan growth between December 2005 and December 2006 resulted from indirect lending channels.

Despite the slight market share decline, "credit unions continue to show a strong performance in the auto lending arena, as they have solidified themselves as strong competition for the established captives, banks and independents," said Tony Boutelle, CEO of CUDL.