Credit unions accounted for 20% of the loans and leases outstanding in the first quarter, the highest marketshare notched by CUs since they reached 23.8% share during the financial crisis, Melinda Zabritski, Experian’s senior director of automotive finance, told Auto Finance News.
With larger banks like Chase Auto Finance, Santander Consumer USA, and Wells Fargo Dealer Services pulling back originations, credit union marketshare will likely hover in the 20% range for the next few years, she said.
By comparison, CU marketshare totaled 18% in the first quarter of 2016. On a dollar basis, credit union total outstanding balances were $287 billion last quarter, up 15.4% year over year.
“Credit union marketshare has seen growth not only in recent quarters, but also over the last several years,” Zabritski said, citing two reasons for the growth. First, credit unions tend to focus on used-vehicle financing, a segment likely to draw more consumers who prefer affordable vehicles. Second, unlike banks, credit unions are not subject to Consumer Financial Protection Bureau regulations.
