WASHINGTON – The total CU auto loan portfolio topped $33.6 billion during the third quarter of 2015, according to preliminary data analysis released by Callahan & Associates.
The company reported that used auto loans have increased $18.8 billion, while new auto balances have increased $14.8 billion. Overall, the auto loan portfolio is up 15% from third quarter 2014.
Callahan & Associates noted that lending continues to outpace direct lending, a trend that started in the second quarter of 2015. From third quarter 2014 to third quarter 2015, indirect lending increased 21.8% compared to 8.6% for direct auto lending.
Indirect lending has become more popular at credit unions over the past five years and as such has steadily accounted for a greater proportion of the loan portfolio, Callahan’s said, noting that in the third quarter of 2010 indirect lending accounted for 12.8% of the credit union loan portfolio. That has now increased to 17%, according to third quarter 2015 data.
“The third quarter of 2015 was a record lending quarter across most categories,” said Callahan executive vice president, Jay Johnson. “This is seen in the auto lending portfolio as credit unions continue to make an impact in their communities by partnering with auto dealers and providing competitive rates to their members.”
According to Experian Automotive data cited by Callahan’s, in addition to the increase in auto loan balances, auto market share has also increased. Credit unions captured 16.4% of the auto market share as of September 2015. This is the highest market share since the 20.6% captured in 2009.
Utah (52.5%), Idaho (47.7%), Oregon (41.7%), Washington (38.8%), and Colorado (34.4%) lead the industry with highest auto market share.