Slowing Auto Sales? That’s Not What Credit Unions Are Forecasting

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CHICAGO–Projections may call for the auto sales market in 2018 to slow, but most credit unions expect to see the same level of lending or more this year, according to a survey conducted by and CU Direct.

But a clear majority of CUs also say they are concerned about or will be keeping a wary eye on the amount of debt being taken on by their members, according to the same survey. joined with CU Direct in conducting the poll of credit unions in conjunction with CU Direct’s State of the Auto Lending Market webinar hosted by the company in December 2017. That webinar shared that credit unions in the third quarter continued to advance their share of the auto lending market—at the expense of banks—a finding supported in the survey, below. Details on the CU Direct Webinar can be found here.

Below are what credit unions are forecasting for themselves in the year ahead, as well as the type of activity they are seeing:

Looking ahead to 2018, do you anticipate:

  • Greater Auto Loan Volume: 28.5%
  • Reduced Auto Loan Volume: 35%
  • Approximately the Same Auto Loan Volume: 35%

Our 2018 auto lending projections are based on:

  • Greater/Reduced focus on auto loans: 51%
  • Belief the Auto Buying Market Will Slow Down: 21.4%
  • Taking the Same Approach We Had in 2017: 28%

Our credit union’s auto loan marketshare in 2017:

  • Increased: 57%
  • Decreased: 22%
  • Remained the Same: 20%

The auto loan activity we are primarily seeing is in:

  • New vehicles: 14.2%
  • Used vehicles: 71.4%
  • Leasing: 7%
  • Auto Loan Refinancings: 7%

When it comes to auto leasing, our credit union is experiencing:

  • Greater interest/volume: 8%
  • Less interest/volume: 13%
  • We do not offer leasing: 78.7%

What is your credit union’s average time on auto loan decisions:

  • 1-5 minutes:  35.7%
  • 6-15 minutes: 28.5%
  • 16-30 minutes: 14.29%
  • 30-minutes-1 hour: 7.14%
  • 1 hour or longer: 14.2%

Over the last one year, our credit union’s decision time on auto loans has:

  • Gotten faster: 64.29%
  • Gotten slower: 7.14%
  • Remained about the same: 28.5%

Have you seen banks retreat from auto lending in your market:

  • Yes: 71%
  • No: 29%

When it comes to working with local auto dealerships over the past year, we have:

  • Invested more time: 21.4%
  • Invested less time: 7.2%
  • Invested the same time: 71.4%

For 2018, we:

  • Are concerned members are starting to take on too much debt: 35%
  • Are not concerned about members’ debt levels: 21.4%
  • Are not concerned yet, but panning to pay more attention to this issue: 42.8%
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Section: Standard
Word Count: 759
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Copyright Year: 2019
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