HAUPPAUGE, N.Y.–GrooveCar reports its indirect program for credit unions showed a 36% increase in auto loans for partners in 2017 over 2016.
GrooveCar said this is the highest loan growth in a one-year period for its partners on the indirect program since the company was founded in 1999.
"The numbers speak for themselves, we continue to experience sustained auto loan growth fueled by members' increased desire to obtain a new vehicle. GrooveCar is the mechanism that brings all the parties together with its online auto buying platform, dealer network solutions and offline support services," said Frank Rinaudo, SVP of GrooveCar.
Nationwide, new vehicle sales reached 17.2 million, down just 1.8% compared to 2016. Used vehicles, sold through new car dealers, are projected to increase from 15.1 million in 2017, to 15.3 in 2018.
“Credit unions, have traditionally excelled in the pre-owned lending space. The remainder of 2018 will have expanded opportunities in that area,” said Rinaudo. “In the New York region, new car sales remain a solid performer for credit union portfolio growth.
“In addition to traditional financing, we are seeing a continued interest in leasing. Nearly 70% of new vehicle loans are structured through a lease,” continued Rinaudo. “Vehicle financing is performing extremely well here, members are buying vehicles through their credit unions in record numbers."
One of GrooveCar's best performing indirect markets is the New York metro region, said Rinaudo.
“Credit union members total over one million strong and nearly 90% of franchise dealerships participate in the program,” said Rinaudo. "GrooveCar has been a part of the fabric of car buying for nearly two decades, credit unions, members and dealerships look to our program to provide innovative ways to help drive business. The company was originated in this market almost twenty years ago, we are from this region, so it makes sense that our programs work.”