NEW YORK (9/4/13)--A Sunday Forbes.com article cited Credit Union National Association figures to show credit unions have become the auto lender of choice for an increasing number of U.S. consumers looking to purchase cars, Forbes.com said Saturday.
"That's partly because credit union membership is growing; partly because credit unions can often beat the interest rates banks charge, due in part to tax breaks; and according to credit union officials at least, because the Great Recession eroded public trust in big banks," wrote Forbes contributor Jim Henry in an article, "Credit Unions Gain Share In Autos, Trading On Local Image."
The article cited comments by Richard Cordray, director of the Consumer Financial Protection Bureau, in which he said the CFPB recognizes that credit unions were not one of the causes of the recent financial crisis.
Credit union membership is growing at roughly 2% annually, compared with about a 1% annual growth rate for the overall U.S. population, according to CUNA statistics provided to Forbes.
Also, credit unions issued 22.2% of all outstanding U.S. auto loans as of the end of the second quarter--an increase from 21.7% at the end of second quarter 2012, Experian Automotive told Forbes. Banks accounted for 35.6% of loans in the same time frame, which is nearly flat, compared with 35.7% a year earlier.
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