Unchanged: CUs are the Affordable Choice for Auto Financing

The Credit Union National Association’s (CUNA) latest June 2023 Credit Union Auto Lending Monthly Report offers analysis of trends in comparison to banks and other auto finance companies — all based on Equifax’s Analytic Dataset. This analysis is the first of its kind.

This month, there is a significant update. In a prior edition, CUNA included a note stating the numbers for banks and auto finance companies were under revision and subject to change. This month’s current report, however, is updated after a major update from Equifax, which revised the historical data going back to 2005.

“Despite changes to the Equifax dataset, credit unions continue to be the preferred choice by consumers seeking to achieve affordable transportation and financial stability through lower monthly auto-finance payments,” the report states. “As member-owned and not-for-profit financial institutions, credit unions remain mission-focused, offering lower interest rates for auto financing than other lenders.”

Plus:

• Non-prime borrowers at credit unions still achieve significant life-of-loan savings compared with similar borrowers at banks and auto-finance companies.
• Lower monthly payments also contribute to improved payment performance among credit union members, as the percentage of loans that are 60-plus days late is lower compared to other lenders.

View the report here!