Credit union auto loans outpace others in second quarter

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A California CUSO reported Monday that credit unions using its indirect automatic lending platforms generated a record amount of loans in the second quarter, adding another indicator that credit unions are doing well in a tough market.

CU Direct, which does business as Origence, said credit unions funded a record 1.3 million loans through the Origence Consumer LOS and CUDL lending platforms in the second quarter of 2022, a increased 23% year over year, generating $39.5 billion in credit union. loans.

Credit unions using the CUDL network funded 610,819 auto loans in the first five months of 2022. In total, they remain the nation’s largest auto lender, reporting loan growth of 20.8% through May , according to data from AutoCount.

In the first half, 1,132 caisses used the services of Origence. Its CUDL network includes 16,000 car dealerships nationwide. Used vehicles accounted for 76% of all cars financed through the CUDL scheme so far this year, with the remaining 24% being new vehicles.

Tony Boutelle, president/CEO of Irvine, Calif.-based Origence and CU Direct, said credit unions in the CUDL network are outpacing the loan growth of the remaining top 10 lenders, as noted by AutoCount data, and are the only double-digit growth lender so far this year.

“Credit unions continue to demonstrate their ability to gain market share in the auto loan market,” said Tony Boutelle, president and CEO of Origence. “Our primary goal is to provide innovative lending technology that helps our credit union partners make more loans, create a better member experience, and gain a competitive advantage in the marketplace.”

Tony Boutelle Tony Boutelle

Other signs that credit unions are doing well have emerged in the past two months from CUNA and Experian.

Experian’s report on the state of the auto finance market released on June 2 showed that credit unions increased their share of the number of loans and leases in the first quarter for new and used vehicles.

Credit unions originated 15.8% of new auto loans and leases in the first quarter, down from 10.7% a year ago and 13.8% in the fourth quarter. Their used car share was 26.5% in the first quarter, down from 24.5% a year ago and 25.9% in the fourth quarter, according to Experian.

CUNA, which tracks portfolio balances, reported earlier this month that credit unions held $159.7 billion in new auto loans as of May 31, up 10.8% from the year. former. The balance also rose 2.3% from the previous month, compared to a five-year average gain of 1%.

By comparison, the Federal Reserve Bank of St. Louis found that January-June new car and light truck sales were down 18% from the first half of 2021.

Charlie Chesbrough, Cox Automotive’s senior economist and senior director of industry insights, said on Monday that the auto industry continues to run out of new vehicle inventory as the shortage of semiconductor chips still shows no significant improvement.

For used car loans, CUNA found that balances rose 16.3% to $290.3 billion in May from a year earlier, and rose 2.3% from the previous month, against a five-year average gain of 1.2%.

Cox Automotive chief economist Jonathan Smoke said earlier this month that the used-car market has accelerated this year and July sales could top those of July 2021.