Experian Report Underscores Dealers' Need for Credit Union Partnerships
As the chip shortage continues to wreak havoc on new-car inventories, more buyers turn to used cars, according to Experian's State of the Automotive Finance Market Report: Q2 2022.
The report shows almost 62% of all vehicle financing was for used vehicles, up from just over 58% in Q2 2021. That surge has led to a jump in credit unions’ market share. The increase, which Experian calls "significant," saw numbers reach about 26% in Q1 2022, up from about 18% in Q1 2021, coming in second only to banks (just under 28%) and surpassing captive lenders (more than 23%).
"A lot of the increase for credit unions is because, from what I'm seeing so far, credit unions haven't raised their rates," Melinda Zabritski, Experian's senior director of automotive financial solutions, tells Wards. "But I think there's also a balance on the dealer side between maintaining their business and revenue opportunities (while) also making sure that the consumer is well served with loan amounts“ and competitive interest rates.
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