![]() ![]() Used-auto loans rose 16% year-over-year in the first quarter to $317.5 billion, and new auto loans rose 21%, to $175.6 billion.Ĭanvas Credit Union in Lone Tree, Colorado, had slightly more than $2 billion in total auto loans on its books at the end of the first quarter, a 28% increase compared to a year earlier, according to call report data. "When loans are priced right, auto lending is still the credit union industry's bread and butter," he said. Mark Treichel, a former executive director of the NCUA who now runs Credit Union Exam Solutions, said market intel shows the used-car market softening, while new car sales are up this year despite higher rates, prices and monthly payments. Still, some experts remain optimistic about the demand for auto loans. And we need to be able to match or beat their product and service offerings," he said. "In Chicago, I typically keep track of the local area midsize banks and credit unions, as they seem to always offer the best loan offerings. "The jobs report is also showing signs of a greater potential for a possible recession later this year."Īguirre said he studies regional metrics for both banks and credit unions to gauge lending trends. "This is primarily due to higher vehicle prices and higher auto loan interest rates," Aguirre said. United Credit Union in Chicago had more than $61 million in total vehicle loans at the end of the first quarter, a 27% increase compared to a year earlier.īut the $302 million-asset credit union is planning for a significant reduction in loan demand for new vehicles over the next few quarters based on the economic forecasts, according to United Credit Union CEO Mario Aguirre. "This will be short lived, though, and I'd suspect that the first quarter of 2024 could see a dramatic decrease in auto lending not only due to lack of sales but also due to the lack of refinance opportunity as a result of the ever-increasing interest rates," Fifield said. The $252 million-asset Members First had slightly more than $47 million in total auto loans on its books at the end of the first quarter, a 7% increase compared to a year earlier.įifield said the coming decline in auto lending may be mitigated if auto dealers "wake up" and lower the prices on their existing inventory to avoid holding their stock for an extended period. That is especially true at a time when a growing number of indicators are pointing to what could be a substantial recession with a wide ranging financial impact, he said. The Credit Union’s plan will establish new branches in key markets across the Denver metro area."I'd expect in the short term that auto lending will decline as consumer sentiment will have the most discerning buyers wary of any long-term financial commitment," said Courtney Fifield, CEO of Members First Credit Union in Manchester, New Hampshire.Ĭar dealers are still overpaying on trade values relative to the price of new vehicles, and lenders should be wary of their unsecured portion of their auto portfolio increasing, Fifield said. The prototype branch showcases the new exterior identity and branded interior environment for the Credit Union, consult rooms with unique furniture settings, transaction areas with integrated technology and a community room that acts as a hub for social activities. The team is implementing a long-term multi-site branching strategy with Canvas to coincide with the re-brand and name change. LEVEL 5 and PRAXIS3 have been collaborating for over a decade on branch and main office projects across the country. PRAXIS3 joined the design/build team to help create the architecture and interior design for the new branch prototype. The Canvas team partnered with Atlanta-based design-build firm LEVEL 5 for the rollout of six new branches. The name change is part of the $2.3 billion Credit Union’s strategy to transform the experience of financial services for its members and community. Denver, CO-based Public Service Credit Union recently announced their new name change to Canvas Credit Union. ![]()
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