VIENNA, Va. Navy FCU said this morning it originated $753 million in consumer loans last month, the best month for consumer lending in its 80-year history.
A majority of Navy Federal’s record $3.1 billion in consumer loan originations so far in 2013, or $2.3 billion worth, are auto loans.
“Our members are feeling more confident about their financial health and are looking to buy large items such as newvehicles,” says Tony Gallardy, vice president, consumer and credit card lending for the $45 billion credit union.
Navy Federal Corporate Economist Alan MacEachin pointed to two key factors regarding the credit union’s record year-to-date in auto loan originations including $527 million in May: historically low interest rates (as low as 1.49% at Navy Federal) and the average age of vehicles in the U.S. at greater than 11 years. “Major automakers reported significant sales increases in May compared to last year, further demonstrating that consumers are taking advantage of low rates and replacing older vehicles,” he said.
