Auto loan borrowers at credit unions saved an average of $13,204 in life-of-loan savings, according to the first Credit Union Auto Lending Monthly Report by the Credit Union National Association (CUNA).
The median originated auto loan interest rate for subprime borrowers was 7.86% at credit unions as of September 2022, according to the report. At banks, that figure was 8.67%. The median originated car loan interest rate for deep subprime borrowers was 8.85% at credit unions.
In September, a borrower with an average credit score who took out a six-year $40,000 auto loan at a credit union would pay an annual interest rate of about 5.45%, CUNA said in its report. The bank average rate was 6.86% and the finance company average rate was 7.64%, according to the report.
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CREDIT UNIONS’ UNSECURED PERSONAL LOAN BALANCES INCREASE: REPORT
Auto loan balances grew in 2022
While auto loan interest rates have remained relatively low, their auto loan balances have increased, CUNA’s research found.
Total auto outstanding loans, excluding leases, increased to $1.48 trillion as of September. This marked an increase of about $85 billion (6.1%) year-to-date. But despite higher balances, drivers continue to keep up with their monthly payments. The 60 or more days delinquency rate for credit unions was 0.24% in September 2022. That rate is the lowest in the industry, according to CUNA.
“Access to reliable transportation is a foundational aspect of financial well-being for consumers,” CUNA Chief Economist Mike Schenk said in a statement. “The significantly lower average monthly auto loan payments result in substantially higher levels of financial resilience among credit union members compared to non-members.”
If you want to keep your overall auto payments down, you could consider switching auto insurance providers to get a lower rate. Visit Credible to compare offers from different providers and find one that’s right for you.
PERSONAL LOANS ARE THE FASTEST-GROWING PRODUCT AT CREDIT UNIONS, DATA SHOWS
Credit union members increase savings balances
Credit union members modestly increased their savings in 2022, according to the latest CUNA Credit Union Profile report. Savings balances increased 0.5% in the second quarter of 2022 and 2% annualized
“The weak gains are not surprising given the fact that the consumer sector continues to reflect strong ‘excess savings balances’ which accumulated during the pandemic,” CUNA said in its report. “Consumers started to shift savings balances into higher yielding term accounts. Certificate balances increased 7.9% in the period. Share drafts were up modestly, but all other savings categories reflected declining balances in the three-month period. Money market shares fell most, with balances slipping 2.7% in the quarter.”
If you want to save money, you could consider lowering your monthly car insurance payments by switching providers. Visit Credible and speak to an auto insurance expert to see if this option is right for you.
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