Get a better auto loan deal at your credit union

by. Gina Ragusa

The auto-buying season is underway and a growing number of borrowers are bypassing dealer financing for a credit union loan instead.

A recent TransUnion poll found that over half of credit union CEOs said that auto loan growth was a high priority, which means deals and loan opportunities will be in abundance this year.

“With delinquency rates at historic lows and consumers prioritizing auto loans above other credit instruments, credit union executives continue to view auto loans as a significant driver of near-term growth,” David Dodson, credit union vice president in TransUnion’s financial services business unit in a statement. “Credit union members should anticipate strong auto loan financing offers throughout 2014.”

Mike Schenk, vice president economics and statistics for the Credit Union National Association (CUNA) told Automotive News that credit union auto loans made up approximately 36.2% of auto loans in the market in 2013. This accounted for roughly $72 billion in new auto loans, which is up 13% from the previous year. Credit union used vehicle loans were up 10% with $128 billion.

“Our market share did increase in 2013, from about 36% to 36.2% of auto outstandings,” he said. “It’s pretty significant, not just that share went up but that credit unions have 36% share in the first place. If you look at credit unions overall, they collectively control only about 7% of the consumer financial assets, but they have a 36% share of automobile.”

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