CHARLOTTESVILLE, Va.–For the first time in nine years, new vehicle loans held by credit unions decreased over a previous quarter, according to data from S&P Global Market Intelligence. Used car loans were up slightly, however.
S&P Global Market Intelligence reported as of March 31, new vehicle loans held by U.S. credit unions totaled $147.38 billion, down 0.9% from year-end 2018. The last quarter-over-quarter decrease occurred in the fourth quarter of 2011.
As CUToday.info has reported, credit unions across the country have reported plummeting auto loan volume as a result of the coronavirus pandemic and economic downturn.
S&P Global Market Intelligence said its analysis found several of the largest credit unions pulled back from new-vehicle lending in the first quarter. Chicago-based Alliant CU has more than doubled its new-vehicle loan portfolio over the last three years but cut its exposure 11.9% in the first quarter, the company said. New-vehicle loans at San Antonio-based Security Service FCU fell 4.6% on a quarterly basis and 12.9% over the last three years.
Overall Sales Down
S&P Global Market Intelligence said U.S. new-vehicle sales in the first quarter were down 2.5% on a year-over-year basis. Passenger car sales dropped 8.7% to 1.3 million units, while the light trucks category increased 0.6% to 2.8 million units. Overall activity remained sluggish in April with a 1.7% year-over-year contraction.
“In contrast, credit unions grew used-vehicle loans for the 32nd consecutive quarter with a 0.8% rise to $222.92 billion,” S&P said. “Total vehicle loans on credit union balance sheets were up $463.4 million, or 0.1%, on a quarter-over-quarter basis.”
U.S. banks and thrifts continued to add auto loans during the first quarter, with 0.5% growth to $457.92 billion, the company added.