Auto lending is a “huge part” of Service Credit Union’s business, and Chief Financial Officer Andrew McGeorge’s outlook for the sector is bright. McGeorge joined four financial services executives last month for a roundtable discussion with editors of the New Hampshire Business Review.
“In 2013, we shattered our record for auto lending, and so far, 2014 is 20% over where we were in 2013,” McGeorge said, according to a published transcript of the event. “The beginning of last year, we had huge snowstorms weekend after weekend after weekend, but the evidence on autos suggests that there is this pent-up demand from consumers from years and years of them just not buying cars. That trend is not going to abate in 2014 and beyond.”
Aside from strong vehicle demand, rising interest rates will likely bolster the sector. “It seems like rates are finally going to start rising, maybe not within the next week, but by the time we get to the end of 2014, and especially by the time we get into 2015,” he said. “We’ll see a move off of these record low interest rates, and that helps financial institutions.”
Portsmouth, N.H.-based Service Credit Union has about $1 billion of auto loans outstanding.
