CU Auto Loan Market Declines

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 by CU Direct Lending (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.