An Experian report released Thursday shows that credit unions continued a three-year model of producing a smaller share of auto loans this spring.
Experian’s “State of the automotive finance marketThe second quarter report shows that credit unions generated 18.2% of auto loans in the three months ending June 30, down from 17.2% in the first quarter and down from 18.8% a year earlier.
In the second quarter measurements, the credit union peak was 22.7% in 2018, falling to 19.8% in 2019.
Meanwhile, banks and captive lenders have increased their share. Banks issued 30.9% of loans in the second quarter, up from 29% in the first quarter and 28.8% a year earlier.
The share of captives in the second quarter was 29.7%, compared to 28% in the first quarter and 29.3% a year earlier.
The trend was reflected in data earlier this month from the Fed and CUNA’s G-19 consumer credit report, which showed that the share of credit unions on the basis of value outstanding loans was 30.6% in June, compared to 31.7% in June 2020 and 31.1% in June. March. It peaked at 32.6% in December 2018.
Credit unions keep a higher percentage of loans in their portfolios, while other lenders sell more in the secondary market.
Defaults were low for credit unions and other lenders. Among the 10 largest credit unions by asset, loans past due 60 days or more represented 0.37% of balances as of June 30, down from 0.58% a year earlier and 0.69% two years earlier.
Among all lenders, Experian found 60-day default rates at 0.36% on June 30, down from 0.39% a year ago and 0.59% two years ago.
Experian also found that prices and payments were up sharply from two years earlier before the COVID-19 pandemic.
Experian found borrowers financed an average of $ 35,163 on new cars in the second quarter, down 2.7% from a year earlier and up 8.7% from two years earlier . Monthly payments on new cars were $ 575 in the second quarter, down from $ 570 a year earlier and $ 555 two years earlier.
The average used car loan was $ 23,365 in the second quarter, up 9.4% from the previous year and 14.8% from two years earlier. Monthly payments on used cars were $ 430 in the second quarter, down from $ 397 a year earlier and $ 390 two years earlier.
Interest rates are lower than two years ago, but buyers are spending more in part because of their growing preference for large SUVs, SUVs and expensive trucks.
Cox Automotive said on Wednesday that the supply of unsold used vehicles on dealer lots in the United States had reached 2.44 million vehicles at the end of July, up from 2.40 million the previous month. The used vehicle inventory improved by 12% compared to the end of July 2020, but was still down 14% compared to July 2019.
Charlie Chesbrough, senior economist at Cox Automotive, said prices are higher due to a shortage of new vehicles caused by a shortage of microchips, which has resulted in increased demand for used cars.
“For consumers, finding a used vehicle at an attractive price is a huge challenge in today’s market,” said Chesbrough. “Sales have slowly declined in recent months due to limited availability and high prices, but not enough to drive away potential buyers. The situation is unlikely to improve significantly until the supply problems in the new market begin to improve. “