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Credit Unions are Supplanting Larger Lenders in the Auto Market

First time car buyerAccording to an article recently published in the Wall Street Journal's Money Beat "...credit unions are also supplanting other large types of lenders in the auto market. Credit unions’ share of the total marketplace expanded from 15.7% to 16.9% in the first quarter of 2015 compared with the same period a year earlier, according to data provider Experian Automotive. Banks and automakers’ “captive” lending arms, which each control a larger slice of the market than credit unions, saw their market share erode by 1.8% and 1.0%, respectively.

Those market share gains accompany an increase in membership at credit unions. As a group, credit unions added 1.3 million new members in the first quarter, a record pace of expansion, according to CUNA Mutual. Deposit balances at credit unions also topped $1 trillion in March for the first time ever, CUNA Mutual added." You can click here to read the full story.

Additionally, the article stated that, "Much of the growth is being powered by the booming market for U.S. car sales. Analysts are predicting that auto makers will report on Tuesday that they sold 1.59 million vehicles in May, putting the industry on pace to sell 17 million units for the first time since 2001."

This is a great time to evaluate your credit union's auto-lending program and determine how to capture even more auto loans than you already are. Ser Technology, typically known for their auto-recapture program, has teamed up with CUNA Mutual Group to offer Missouri credit unions an informational webinar on the loan generation options available and strategies that may boost your credit union's loan portfolio.

We know that consumers are obtaining loans. If they aren't financing through their credit union, where are they going? Make sure your members are aware of their options and the products available through your credit union. To register for this informational webinar, click here.

if you have questions regarding a loan marketing or a loan recapture program, please contact Tim Loveless, 800.392.3074, ext. 1372 or 314.542.1372.