Lending Curve
According to economists at industry organization America’s Credit Unions, the rates of auto loan delinquencies have reached the highest level in this decade. Credit risk is rising, and economic uncertainty is high. For credit union auto loans, 60-day delinquencies have reached levels not seen since before the pandemic. Let’s look at some of the historical metrics for clues to remedy the situation in the remainder of 2025.
Credit unions enjoy a consultative relationship with their members. For those members who are considering purchasing a vehicle in 2025, well-trained auto loan staffers can play an important role in counseling members on important financial, tax, and much-needed protection products that save money and increase the value of their purchase.
A mid-year review for credit unions reveals several opportunities to gain auto lending market share versus banks and captive lenders. Leveraging their traditional position offering competitive rates and personalized service, auto loan portfolio managers should focus on aggressive pricing and strong member-focused strategies to make significant gains in vehicle financing market share.
