Despite increasing customer requests for 96-month auto loans, Oregon Community Credit Union caps terms at 84 months, Ethan Nelson, Oregon Community Credit Union vice president of credit administration, told Auto Finance News.
While indirect auto lending at the credit union has decreased in the past year, Nelson said the lack of 96-month financing was not a “major factor for originations being down.” He declined to identify the reason for the drop-off, though.
As of Sept. 30, OCCU had $695 million auto loans outstanding, compared with $801 million at yearend 2017, according to financial statements.
Industrywide, average auto loan terms have lengthened as consumers seek more affordable monthly payments amid higher interest rates. So far this year, the average term has been 72 months, according to Edmunds, compared with 69.3 at yearend 2017.