Business Growth Economy

Maintaining Market Share Gains

Credit union auto lenders received an early holiday gift in the form of Experian’s State of the Automotive Finance Market Report: Q2 2022. According to the quarterly report, credit unions’ auto lending market share increased to 25.81 percent, from 18.32 percent in Q2 2021. In comparison, captives decreased to 22.64 percent this quarter, from 28.47 percent the previous year. This was the highest increase of total market share credit unions have ever experienced. Whoop!

What prompted this exceptional gain? While captive lenders beat a hasty retreat from incentives, credit unions stayed flexible, offering lower interest rates to consumers seeking the best auto financing deal they could find. In Q2 2022, credit unions’ new vehicle market share increased to 26.69 percent, from 15.27 percent in Q2 2021, and grew used market share from 23.49 percent to 28.62 percent year-over-year.

Is this positive trend an anomaly – or do credit unions have the potential continue this growth into 2023? The answer depends on whether credit unions continue those practices which separate them from the competition as well as responding quickly to shifting consumer needs during these uncertain times.

Business Growth Economy

Diminishing the Drumbeat of Lost Auto Loan Volume

Mark Rappaport President Simplicity Division EFG Companies
Contributing Author:
Mark Rappaport
Simplicity Division
EFG Companies

You’re sitting in a dark movie theater, watching a suspenseful film. Tensions build as an ominous drumbeat signals danger. Is the danger real or a figment of your imagination?

The credit union industry might be hearing a drumbeat, but is it real?

After steadily gaining auto finance share over the past eight years, credit unions lost market share in the first quarter, according to Experian’s latest State of the Automotive Finance Market Report. Market share for credit unions dipped 1.4 percentage points to 19.9%, down from 21.3% in the first quarter of 2018.

The drop was largely driven by declines in used-car financing, where market share fell to 26% from 28% in first-quarter 2018. Even in new-vehicle financing, credit unions’ share dipped to 12.4% from 13.5% the previous year.