Credit unions ranked auto loans their highest growth opportunity in the next 12 months in a recent survey, according to credit reporting bureau TransUnion.
That’s consistent with TransUnion survey results late last year. In the most recent survey, mortgages and credit cards also did some catching up. Chicago-based TransUnion announced the survey results today, from its annual credit union seminar in Las Vegas.
“We have definitely seen an increase in auto loan growth. A lot of it is driven by interest in new cars. There are a lot of new models in the pipeline, a lot of new technologies. We see a lot of demand on the purchase side,” said David Brydun, vice president of consumer lending at Baxter Credit Union in Vernon Hills, Ill.
In addition, Baxter Credit Union is also seeing a lot of demand for refinancing, Brydun told Auto Finance News in a phone interview on Monday.
According to a TransUnion survey of 90 credit union executives, 48% of the respondents ranked auto loans No. 1 as their biggest growth opportunity, up from 46% last year. In addition, 81% ranked autos in the Top 3.
Comparing the first quarter of 2015 to the first quarter of 2014, TransUnion said credit unions had a 7.4% increase in auto loan originations, vs. a 2.1% increase for all lenders.
The survey also showed gains among credit union executives for mortgages and credit cards. About 60% of respondents rated mortgages in their Top 3 growth opportunities, up from 50% last year. Credit cards were rated in the Top 3 by 46%, up from 32%.
