Experian reports in their “State of the Automotive Finance Market” paper, that credit unions have earned the largest share of automotive financing in the US by producing more auto loans than banks or other lenders. They have topped the market by producing more than 30% of all auto loans. The report also shows that credit union-funded auto loans rose by 8% from 2021 while the second-highest auto lender, banks, lost almost 7% of the market share. The CEO of Tennessee Valley Federal Credit Union, Todd Fortner, says “this unprecedented achievement signifies the growth of credit union awareness and participation across the country. Fortner also states, “credit unions reinvest funds into the communities they serve by providing members with highly competitive loan rates as well as other products and services to support their financial well-being”.
Credit unions are expected to continue to see growth in 2023 as the markets stabilize and vehicle inventory improves.
Credit unions are financial institutions that are owned and controlled by their members, rather than by shareholders like banks. This means that credit unions are able to offer a range of benefits to their members, including lower fees, higher interest rates on deposits, and lower interest rates on loans. Credit unions also often have a strong focus on community and may offer financial education and other resources to their members. Additionally, credit unions are typically not-for-profit organizations, which means that they are able to reinvest their profits back into the credit union and its members, rather than into the pockets of shareholders. Overall, credit unions can be a good choice for individuals and families looking for a financial institution that is focused on meeting their needs and helping them to reach their financial goals.
Discover How Our Accounts Receivable Solutions Can Improve Your Business’s Cash Flow