Despite most analyst predictions of flattening auto sales for the foreseeable future, auto loans appear to remain a highlight in most credit union portfolios. Of particular interest to institutions financing used car loans is the average age of cars on the road setting a new high water mark of 11.6 years, per Credit Union National Association (CUNA) statistics. With that amount of mature metal on the road, demand should hold strong.
- U.S. auto sales are forecasted to decline 2.1 percent in 2018 and 1 percent in 2019, per Wards Intelligence
- However, outstanding used loans increased by 10.2 percent in 2017 and 9.9 percent in the year ended June 2018, per CUNA
- Credit unions are leading used financing market share at 28.8 percent, a 1.1 percent rise year over year in Q2 2018, per Experian
- Used car prices are projected to stabilize over the next several years, per Moody’s Analytics
- Rising interest rates and tighter credit standards will steer consumers toward used options, with growth remaining near double-digit levels, per CUNA