Auto Loan Demand, Growth Continues Downward Trend

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Auto lending, long the bread and butter of credit union business, continued to trend downward in April according to an economic analysis by CUNA Mutual Group.

Where auto lending used to be the leader of the pack for credit union lending, it has actually been a drag on the loan portfolio of late, noted CUNA Mutual Group Economist Dave Colby.

Rising gas prices, Colby suggested, are one of the motivating factors that have driven would-be auto buyers away from the dealership, forcing credit unions to look to other sources of loan growth, such as real estate loans and member business loans.

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