Credit union loan growth is still widely attributed to an increase in vehicle loans, according to April reports. The first few months of 2013 showed surprising growth in the loan portfolio that has credit unions excited about consumer behavior.
Dave Colby, Chief Economist of CUNA Mutual was surprised by the vehicle loan portfolio’s first quarter gain of 1.3 percent. Typically, vehicle loans dip during the first few months of the fiscal year.
In 2012, the CUNA Mutual Group’s Credit Union Trends Report showed that new and used auto loans made up 54 percent of total loan growth for credit unions and accounted for 72 percent of total annual gain in the industry. Used vehicle loans made up nearly 33 percent of loan growth alone during the same year.
Vehicle loans reached 9.5 percent year-over-year, at $184 billion. Lenders like credit unions and private banks are focused on providing loans members actually want to work with.
“… market evidence points to continued strong member demand for new and used vehicle purchases,” Colby stated. The 2013 first quarter reports have credit unions confident in their ability to continue accommodating consumer demands for lower rates, longer terms, and lower payments.
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 and applying for an auto loan, visit any of our locations, and we can get you started on a brighter financial future.