2016 Auto lending depends on rates

first_imgA rising tide lifts all ships and the improving economy has certainly lifted the U.S. auto industry out of the lows of the Great Recession.As reported by Reuters on Aug. 4, 2015, the National Automobile Dealer Association projects 2015 auto sales to reach 17.17 million vehicles, a 4.4 percent increase from 2014. Steven Szakaly, an NADA economist cited in the story, predicts that U.S. sales will peak at a record high in 2016 of 17.46 million vehicles and then slide back to 16.65 million vehicles in 2017.Healthy auto sales translate into good times for those in the lending business, according to CU Direct. During an Oct. 8, 2015, webcast for its lending partners–“State of the Credit Union Auto Lending Market”–CU Direct underscored that auto loans have hit the $1 trillion mark in outstanding balances for the first time in the U.S. history. CU Direct also reported that credit unions captured 25 percent of all U.S. auto loan originations in second quarter 2015 and 19.6 percent in June of 2015, up from 18.8 percent at the same time last year. Riding the wave, CU Direct partner credit unions experienced 16.7 percent in loan growth through mid-year.So, how long will this robust auto lending market last? As long as employment continues to improve, interest rates stay relatively low and gasoline prices remain at their current level. continue reading » 11SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblrlast_img read more

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