The Credit Union National Association (CUNA) Credit Union Auto Lending Monthly Report maintains credit union members are benefitting from favorable auto lending interest rates, resulting in substantial savings.
“Access to reliable transportation is a foundational aspect of financial well-being for consumers,” CUNA Chief Economist Mike Schenk said. “The significantly lower average monthly auto loan payments result in substantially higher levels of financial resilience among credit union members compared to non-members.”
Per the CUNA, the report covering September 2022 determined consumers on the lowest end of the credit score spectrum averaged $13,204 in life-of-loan savings in comparison to other lenders.
Other report findings, the CUNA noted, include credit unions’ market share being 31 percent in September, representing a rise from 28 percent from the same period last year; credit union balances increasing by 17.4 percent over a 12-month period ending in September and 16.5 percent year-to-date; and credit unions’ market share of new loan originations reaching another peak in September 2022 at 42.5 percent, resulting in member-owned depositories becoming the nation’s top auto lender.
According to the CUNA, credit unions extended more loans to non-prime credit score borrowers compared to other depository institutions, with credit union loan pricing being generally favorable across the credit score spectrum.