Auto Loan Market Share Declines for CUs

RANCHO CUCAMONGA, Calif. – Credit unions held an 18% share of the auto loan market in 2006, down from an all-time high of 19.3% in 2005, according to a new study released last week by CUDL, the indirect lending company. Still, auto lending was the one product area where credit unions continued to maintain a significant market share. Car-buyers also continued the trend of taking out longer loans to finance their vehicles, CUDL’s 2007 Auto Lending Business Intelligence Report found. More than two-thirds of all new vehicle loans originated by credit unions last year had a maturity of five years or longer. A similar trend is occurring for all borrowers, with 55% of new auto loans made by banks and captive finance companies also at five-years or more. CUDL reported that 39.4% of all credit union auto loans outstanding last year were indirect loans.