CUNA News
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • Credit Union Magazine
    • Buyers' Guide
    • COVID-19
    • Digital Edition
    • Credit Union Hero
    • Credit Union Rock Star
    • Subscribe
    • Advertise
    • Contact
  • Advertise
  • Topics
    • Community Service
    • Compliance
    • Credit Union Hero
    • Credit Union Rock Star
    • Credit Union System
    • Directors
    • Human Resources
    • Leadership
    • Lending
    • Marketing
    • Operations
    • Policy & Issues
    • Sales & Service
    • Technology
  • Awards
    • Nominate Credit Union Hero
    • Nominate Credit Union Rock Star
  • Podcasts
  • Videos
  • Contact

News

Home » Auto lending report shows significant credit union member savings
Policy & Issues

Auto lending report shows significant credit union member savings

February 3, 2023
ALMR23_FBLI.jpg

Credit unions continue to fulfill their mission through extremely favorable auto lending interest rates, according to CUNA’s inaugural Credit Union Auto Lending Monthly Report. The report—covering September 2022—shows consumers on the lowest end of the credit score spectrum average $13,204 in life-of-loan savings compared to other lenders.

“Access to reliable transportation is a foundational aspect of financial well-being for consumers,” said CUNA Chief Economist Mike Schenk. “The significantly lower average monthly auto loan payments result in substantially higher levels of financial resilience among credit union members compared to non-members.”

National trends in credit union auto lending in September 2022 include:

  • Credit Unions’ market share reached 31% in September up from 28% same period last year.
  • Credit Union balances grew by 17.4% over a 12-month period ending in September and 16.5% year-to-date.
  • Credit unions’ market share of new loan originations reached another peak in September 2022 at 42.5%, making these member-owned depositories the top auto lender in the county. Credit unions captured 30.0% of the market same period last year.
  • Credit unions’ performance in new loan origination has been strong this year while other lenders generally experienced declines in balances. The year-to-date growth rate in origination for credit unions as of September was 28.2% higher compared to the previous year.
  • Credit unions extended more loans to nonprime credit score borrowers compared to other depository institutions. Non-prime borrowers account for 23% in September 2022 compared to only 14% at banks.
  • Credit union loan pricing is generally very favorable across the credit score spectrum. In September, the typical consumer with an average credit score who financed a six-year $40,000 auto loan at a credit union would pay an annual interest rate of approximately 5.45% — below the 6.86% bank average rate and well below the 7.64% average rate at a finance company.
  • The payment performance of all nonprime borrowers is substantially higher at credit unions than at banks. This is due in part to lower interest rate at credit unions which makes loans affordable to members. The 60+ days delinquency rate in September 2022 for credit unions at 0.24% is the lowest in the industry (0.1% for prime borrowers and 0.7% for non-prime borrowers).

Credit Union Magazine: Spring 2023

Spring 2023

Credit Union Magazine’s Spring 2023 issue features the 2023 Credit Union Heroes and examines CUNA-League advocacy priorities, board leadership, the impact of financial well-being efforts, fee-related compliance issues, predictions for the year ahead, and more.
Digital Edition •  Subscribe

Trending

  • CUNA Mascot Madness: See the West winner and vote for the South champ

  • Compliance: FinCEN issues BOI reporting guidance

  • CUNA Mascot Madness: One semifinal set; Vote for the best in the West

Tweets by CUNA_News

Polls

CUNA Mascot Madness: Which South Region mascot is your favorite?

View Results
More

Champion for the Credit Union Movement

Credit Union National Association is the most influential financial services trade association and the only national association that advocates on behalf of all of America's credit unions. We work tirelessly to protect your best interests in Washington and all 50 states. We fuel your professional growth at every level and champion the credit union story at every turn.

More CUNA

  • Membership
  • Contact Us
  • Careers

Resources for

  • Credit Union Advocates
  • Leagues
  • Press
  • Providers

Our Affiliates

  • American Association of Credit Union Leagues (AACUL)
  • Credit Union Awareness
  • Credit Union House
  • CUNA Strategic Services
  • National Credit Union Foundation
GET CUNA UPDATES
© 2023 Credit Union National Association | ADA Compliance Notice & Legal
Email Us