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Automotive News: CU's 36 Percent Auto Share is 'Significant'
Thursday, March 20, 2014 7:00 AM

Credit unions’ share of total auto loans outstanding reached 36.2 percent last year. That’s due in part to better relationships with auto dealers and growing membership ranks, Mike Schenk, vice president economics and statistics for the Credit Union National Association in Madison, Wis., tells Automotive News.

He tells Automotive News readers that as of the end of 2013, credit unions had about $72 billion in new-vehicle loans outstanding, an increase of about 13 percent from a year ago. For used-vehicle loans, credit unions had about $128 billion outstanding, up 10 percent.

Schenk discussed the gains with Automotive News Special Correspondent Jim Henry this week. According to Schenk, the new auto portfolio is the fastest-growing segment for credit unions. The used-automobile portfolio is the second-fastest. He explains to Henry that credit unions are gaining share for several reasons:

  1. Credit unions are working more closely with dealers.
  2. Membership is up. In 2013, credit union membership was up by 2.4 million [to about 97 million], a 2.5 percent increase. Never in history did credit unions add 2.4 million in a single year. That broke all records. And we haven’t seen a 2.5 percent increase in 15 years.
  3. Our cooperative structure. Credit unions are democratically controlled by depositors and borrowers -- the deal the average consumer can get would be substantially better than they would get at commercial banks.

Click here to read the full story.