Auto lending helps Michigan CUs gain popularity

LANSING, Mich. (9/16/09)--Michigan credit unions saw an 8.5% increase in new auto loans during second quarter, says the Michigan Credit Union League, citing data from the National Credit Union Administration.

The increase equals $2.2 billion in auto loan balances as of June 30--a 32% increase in new-vehicle loans over June 2008 (Michigan Monitor Sept. 14).

"More than 200 credit unions statewide have stepped in to fill the void in auto lending," said league President/CEO David Adams. "Credit unions are financially stable, increasing members' savings deposits, and supporting their members and Michigan's auto companies by making the loans that put new and used cars on the road," Adams added.

He cited credit unions' "Invest in America" program, which "has strengthened credit union relationships with auto dealers and shown the importance of buying American."

Used-car loans increased 14% over the period, and small business loans grew about 17%. That momentum continued into the third quarter of 2009, with the state's credit unions increasing their market share of new- and used-car loans from 23% July 31, 2008, to 36% on July 31, 2009. This is the highest market share increase of the 20 most populous states, the league said.

On Tuesday, the Oakland Press featured the statistics and Adams' comments, as well as a comment from Claudia York, CEO of Chief Financial FCU, Pontiac, who noted the increase in business in both new- and used-car loans.

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Resource Links
Oakland Press article
Take the Wheel: Get the Best Car Deal member seminar kit
Fundamentals of Personal Finance Your Vehicle Buying Road Map handbook
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