Last year, credit unions throughout the country accounted for 80 percent of vehicle loan growth. The 510 largest credit unions with assets ranging from $404 million to $52.4 billion reported an increase in the industry’s total vehicle loan portfolio of 15.6 billion, or 9.3 percent, over a 12-month period. The annual growth demonstrated the highest rate in more than seven years, according to CUNA Mutual Group’s March Credit Union Trends Report.
In all, 49 percent of credit unions showed positive growth in the auto loan category, of which 57.9 percent were credit unions with assets of over $197 billion. Only 145 of the 510 largest credit unions reported a small decline in total auto loans.
An article about the Trends Report posted by the Credit Union Times stated, “the factors that have led to strong auto loan activity are the robust sales of stronger, new light vehicles, less generous financing incentives from captives and lower rates at credit unions.” Lower rates definitely helped push a rise in loans for credit unions. In fact, in 2012 credit unions experienced a growth of $6 billion in new vehicle loans accounting for 22 percent of all credit union loans. Additionally, used vehicles loans showed an 8.9 percent gain according to the report, the highest rate since early 2004.
Evidence is piling up in favor of the nation’s credit unions. These financial institutions are helping and guiding consumers in leading the economic recovery. Total loans and mortgages are up 26 percent and 50 percent respectively since 2012. Growth trends are slowly but surely improving and have been since 2011. Economists are confident that the trend to invest in credit unions is expected to remain steady and strong.
If you would like more information about how credit unions work and how they can benefit you, please contact our Valley Federal Credit Union main branch at 956.456.3108. If you are interested in joining us, visit any of our locations, and we can get you started on a brighter financial future.