Driving future auto loans

first_img 5SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr CUs need a long-term strategy that includes a mobile presenceby: Bill MeyerBetween 2015 and 2020, the auto lending marketplace faces a far-reaching transformation, with planned and unexpected changes in regulations, consumer trends, the economy, and technology all playing a role.To meet current and long-term goals, credit unions need a long-term strategy that helps drive more auto loans. This strategy must be designed to give CUs a competitive advantage over banks and other lenders vying for consumer loans and loyalty. It also needs to take into consideration the entire auto shopping and buying process, the significant presence of young people in the car-buying market, and trends in remote service delivery–especially mobile.The Lending LandscapeCredit unions face an increasingly competitive auto loan marketplace. CUs captured 24 percent of all auto loan originations in Q3 2014 according to research from Experian; they continue to increase their market share, with auto loans comprising 31 percent of their total portfolio, according to data from Callahans. However, banks still hold 38 percent market share in the auto lending marketplace to credit unions’ 19.5 percent, finds Autocount.The Internet and mobile are transforming auto shopping by giving buyers the ability to research models, prices and inventories—across multiple devices—long before setting foot on a car lot. With smartphone apps, buyers can check book value, prices and availability during final negotiations.Notably, JD Power’s Power Information Network finds that Generation Y represents more than 25 percent of all retail autosales and predicts it will represent more than 40 percent of all vehicle purchases by 2020. The ability to be always connected and always consuming information presents implications for marketers and lenders alike. continue reading »last_img

Leave a Reply

Your email address will not be published. Required fields are marked *