Accessibility Statement Skip Navigation
  • Why PRWeb
  • How It Works
  • Who Uses It
  • Pricing
  • Login
  • GDPR
  • Create a Free Account
Return to PRWeb homepage
  • News
  • Resources
  • Contact
When typing in this field, a list of search results will appear and be automatically updated as you type.

Searching for your content...

No results found. Please change your search terms and try again.
  • News in Focus
      • Browse News Releases

      • All News Releases
      • Multimedia Gallery

      • All Multimedia
      • All Photos
      • All Videos
  • Business & Money
      • Auto & Transportation

      • Aerospace, Defense
      • Air Freight
      • Airlines & Aviation
      • Automotive
      • Maritime & Shipbuilding
      • Railroads and Intermodal Transportation
      • Supply Chain/Logistics
      • Transportation, Trucking & Railroad
      • Travel
      • Trucking and Road Transportation
      • View All Auto & Transportation

      • Business Technology

      • Blockchain
      • Broadcast Tech
      • Computer & Electronics
      • Computer Hardware
      • Computer Software
      • Data Analytics
      • Electronic Commerce
      • Electronic Components
      • Electronic Design Automation
      • Financial Technology
      • High Tech Security
      • Internet Technology
      • Nanotechnology
      • Networks
      • Peripherals
      • Semiconductors
      • View All Business Technology

      • Entertain­ment & Media

      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • View All Entertain­ment & Media

      • Financial Services & Investing

      • Accounting News & Issues
      • Acquisitions, Mergers and Takeovers
      • Banking & Financial Services
      • Bankruptcy
      • Bond & Stock Ratings
      • Conference Call Announcements
      • Contracts
      • Cryptocurrency
      • Dividends
      • Earnings
      • Earnings Forecasts & Projections
      • Financing Agreements
      • Insurance
      • Investments Opinions
      • Joint Ventures
      • Mutual Funds
      • Private Placement
      • Real Estate
      • Restructuring & Recapitalization
      • Sales Reports
      • Shareholder Activism
      • Shareholder Meetings
      • Stock Offering
      • Stock Split
      • Venture Capital
      • View All Financial Services & Investing

      • General Business

      • Awards
      • Commercial Real Estate
      • Corporate Expansion
      • Earnings
      • Environmental, Social and Governance (ESG)
      • Human Resource & Workforce Management
      • Licensing
      • New Products & Services
      • Obituaries
      • Outsourcing Businesses
      • Overseas Real Estate (non-US)
      • Personnel Announcements
      • Real Estate Transactions
      • Residential Real Estate
      • Small Business Services
      • Socially Responsible Investing
      • Surveys, Polls and Research
      • Trade Show News
      • View All General Business

  • Science & Tech
      • Consumer Technology

      • Artificial Intelligence
      • Blockchain
      • Cloud Computing/Internet of Things
      • Computer Electronics
      • Computer Hardware
      • Computer Software
      • Consumer Electronics
      • Cryptocurrency
      • Data Analytics
      • Electronic Commerce
      • Electronic Gaming
      • Financial Technology
      • Mobile Entertainment
      • Multimedia & Internet
      • Peripherals
      • Social Media
      • STEM (Science, Tech, Engineering, Math)
      • Supply Chain/Logistics
      • Wireless Communications
      • View All Consumer Technology

      • Energy & Natural Resources

      • Alternative Energies
      • Chemical
      • Electrical Utilities
      • Gas
      • General Manufacturing
      • Mining
      • Mining & Metals
      • Oil & Energy
      • Oil and Gas Discoveries
      • Utilities
      • Water Utilities
      • View All Energy & Natural Resources

      • Environ­ment

      • Conservation & Recycling
      • Environmental Issues
      • Environmental Policy
      • Environmental Products & Services
      • Green Technology
      • Natural Disasters
      • View All Environ­ment

      • Heavy Industry & Manufacturing

      • Aerospace & Defense
      • Agriculture
      • Chemical
      • Construction & Building
      • General Manufacturing
      • HVAC (Heating, Ventilation and Air-Conditioning)
      • Machinery
      • Machine Tools, Metalworking and Metallurgy
      • Mining
      • Mining & Metals
      • Paper, Forest Products & Containers
      • Precious Metals
      • Textiles
      • Tobacco
      • View All Heavy Industry & Manufacturing

      • Telecomm­unications

      • Carriers and Services
      • Mobile Entertainment
      • Networks
      • Peripherals
      • Telecommunications Equipment
      • Telecommunications Industry
      • VoIP (Voice over Internet Protocol)
      • Wireless Communications
      • View All Telecomm­unications

  • Lifestyle & Health
      • Consumer Products & Retail

      • Animals & Pets
      • Beers, Wines and Spirits
      • Beverages
      • Bridal Services
      • Cannabis
      • Cosmetics and Personal Care
      • Fashion
      • Food & Beverages
      • Furniture and Furnishings
      • Home Improvement
      • Household, Consumer & Cosmetics
      • Household Products
      • Jewelry
      • Non-Alcoholic Beverages
      • Office Products
      • Organic Food
      • Product Recalls
      • Restaurants
      • Retail
      • Supermarkets
      • Toys
      • View All Consumer Products & Retail

      • Entertain­ment & Media

      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • View All Entertain­ment & Media

      • Health

      • Biometrics
      • Biotechnology
      • Clinical Trials & Medical Discoveries
      • Dentistry
      • FDA Approval
      • Fitness/Wellness
      • Health Care & Hospitals
      • Health Insurance
      • Infection Control
      • International Medical Approval
      • Medical Equipment
      • Medical Pharmaceuticals
      • Mental Health
      • Pharmaceuticals
      • Supplementary Medicine
      • View All Health

      • Sports

      • General Sports
      • Outdoors, Camping & Hiking
      • Sporting Events
      • Sports Equipment & Accessories
      • View All Sports

      • Travel

      • Amusement Parks and Tourist Attractions
      • Gambling & Casinos
      • Hotels and Resorts
      • Leisure & Tourism
      • Outdoors, Camping & Hiking
      • Passenger Aviation
      • Travel Industry
      • View All Travel

  • Policy & Public Interest
      • Policy & Public Interest

      • Advocacy Group Opinion
      • Animal Welfare
      • Congressional & Presidential Campaigns
      • Corporate Social Responsibility
      • Domestic Policy
      • Economic News, Trends, Analysis
      • Education
      • Environmental
      • European Government
      • FDA Approval
      • Federal and State Legislation
      • Federal Executive Branch & Agency
      • Foreign Policy & International Affairs
      • Homeland Security
      • Labor & Union
      • Legal Issues
      • Natural Disasters
      • Not For Profit
      • Patent Law
      • Public Safety
      • Trade Policy
      • U.S. State Policy
      • View All Policy & Public Interest

  • People & Culture
      • People & Culture

      • Aboriginal, First Nations & Native American
      • African American
      • Asian American
      • Children
      • Diversity, Equity & Inclusion
      • Hispanic
      • Lesbian, Gay & Bisexual
      • Men's Interest
      • People with Disabilities
      • Religion
      • Senior Citizens
      • Veterans
      • Women
      • View All People & Culture

  • Hamburger menu
  • Cision PRWeb provides efficient communication tools to continuously engage with target audiences across multiple online channels
  • Create a Free Account
    • ALL CONTACT INFO
    • Contact Us


      11AM ET Sunday – 8PM ET Friday

  • Send a Release
  • Sign up
  • Log in
  • Resources
  • RSS
  • GDPR
  • News in Focus
    • Browse All News
    • Multimedia Gallery
  • Business & Money
    • Auto & Transportation
    • Business Technology
    • Entertain­ment & Media
    • Financial Services & Investing
    • General Business
  • Science & Tech
    • Consumer Technology
    • Energy & Natural Resources
    • Environ­ment
    • Heavy Industry & Manufacturing
    • Telecomm­unications
  • Lifestyle & Health
    • Consumer Products & Retail
    • Entertain­ment & Media
    • Health
    • Sports
    • Travel
  • Policy & Public Interest
  • People & Culture
    • People & Culture
  • Send a Release
  • Sign up
  • Log in
  • Resources
  • RSS
  • GDPR
  • Send a Release
  • Sign up
  • Log in
  • Resources
  • RSS
  • GDPR
  • Send a Release
  • Sign up
  • Log in
  • Resources
  • RSS
  • GDPR

Credit Unions Cautiously Optimistic About Auto Finance Landscape, Expect Improvements Mid-2025


News provided by

Credit Union Leasing of America

Oct 07, 2024, 09:00 ET

Share this article

Share toX

Share this article

Share toX

57% of credit union respondents are feeling optimistic about the auto finance landscape through the end of 2024
57% of credit union respondents are feeling optimistic about the auto finance landscape through the end of 2024

42% of credit unions report loan volume growth year-over-year, and 57% feel optimistic about rest of 2024, according to a new CULA survey, but uncertainties about presidential election and finance market pushing relief from liquidity and delinquency crises to 2025

SAN DIEGO, Oct. 7, 2024 /PRNewswire-PRWeb/ -- Credit unions are generally optimistic about the auto finance landscape through the end of 2024, but most don't expect improvements in the liquidity and delinquency crises, or significant impact from lowered interest rates,[1] until mid-2025, according to Credit Union Leasing of America's (CULA) most recent "Future of Auto Finance – the Next Six Months" snapshot survey of credit union professionals.

Fulfilling credit union projections recorded in CULA's last survey in January, where 40% of respondents said they expected to see growth in their auto finance portfolio in 2024, 42% of credit union respondents reported year-over-year loan volume increases. Fifty percent of those report loan volume growth of over 6%, and 21% experienced growth of 11% or more, as a result of positive impacts from this year's slight decline in vehicle prices, interest rates and inflation. Of the 58% with no positive impact, 21% report that loan volumes have been flat, while 79% have experienced declines.

The overall sentiment of credit unions today is one of cautious optimism, with the vast majority expecting no declines in their auto finance portfolios across the next six months, and nearly half expecting further growth.

Post this

Overall, the majority are looking to mid-2025, and beyond, for significant improvements in the auto finance market. For example, nearly 60% don't expect to see the auto loan delinquency rate stabilize until 2025 and, while 34% say they already see signs that the liquidity crisis is abating, the majority (60+%) see it lasting well into the next year and beyond. Likewise, the majority don't anticipate changes in interest rates significant enough to impact their business until 2025 (it should be noted, however, that while there had been small interest rate declines at the time of this survey, it was deployed before the recent half point reduction).

"The overall sentiment of credit unions today is one of cautious optimism, with the vast majority expecting no declines in their auto finance portfolios across the next six months, and nearly half expecting further growth, a slight uptick from our January 2024 survey," said CULA President, Ken Sopp. "That being said, continued uncertainties around the current auto finance market, as well as the presidential election, are pushing credit unions' projections for improvements in liquidity and delinquency well into 2025."

Sopp noted that 69% of those surveyed agreed that most consumers are waiting until after the election to make big ticket purchases, such as a vehicle. And, while the survey confirmed that 57% of respondents are feeling optimistic about the auto finance landscape through the end of 2024, 43% are apprehensive or pessimistic. Rising delinquencies, continuing inflation, high interest rates, and financial uncertainty are contributing to their apprehension or pessimism, with delinquencies and overall financial uncertainty the biggest factors.

Vehicle leasing continues to be a strong auto finance option for credit unions, with 76% saying that consumers are as likely to consider leasing today as they were when vehicle prices were higher because of leasing's flexibility and affordability compared to long term auto loans. Interestingly, as electric vehicle (EV) sales reach record heights (albeit with a slower growth rate), credit unions expect that leasing will continue to increase as a percent of total EV purchases. In fact, EV leasing tripled YoY to a 35.2% share of all EV purchases in Q1 2024.

"The continued popularity of vehicle leasing with credit unions, even as vehicle prices soften, was a striking finding of the survey, although it makes perfect sense given the significant increase in car buyers opting for leasing in 2024," said Mark Chandler, Vice President of Business Development for CULA.

Experian's State of the Automotive Finance Market Report: Q2 2024 reports that vehicle leasing grew to 25.35% in Q2[2], up from 21.14% last year and 19.30% in Q2 2022, as "consumers who continue to seek flexibility and affordability as the market evolves, see leasing as an optimal choice."

CULA's "Future of Auto Finance – the Next Six Months" snapshot survey was conducted online from August 28 through September 18, 2024 among 120+ credit union professionals.

Key Survey Takeaways

-Overall Sentiment

  • 57% are optimistic about the auto finance landscape through the end of 2024.

-Loan Volumes

  • 42% report that their auto finance portfolios are seeing a positive impact in originations from the slight YoY decline in vehicle prices, interest rates and inflation.
  • 50% of those seeing a positive impact say loan volumes grew 0-5% YoY, 29% say loan volumes grew 6-10%, 17% say loan volumes grew 11-35%, and 4% say loan volumes grew 36+%.
  • 21% of those not seeing a positive impact say loan volume has been flat, with 79% saying loan volumes have decreased.
  • 87% say their auto loan portfolio will grow (45%) or remain flat (42%) in the next six months compared to the previous six months.

-Delinquencies and Liquidity

  • 59% expect the auto loan delinquency rate to begin to stabilize in 2025 (28% first half, 31% second half).
  • 28% don't expect the auto loan delinquency rate to begin to stabilize until 2026.
  • 34% say they are already seeing signs of the liquidity crisis abating.
  • 57% say the liquidity crisis will last from six months to two years.

-Leasing / Purchasing Predictions

  • 76% say consumers are as likely to consider leasing as they were when prices were higher because consumers are still very price conscious and even in the best of times, vehicle leasing offers flexibility and affordability compared to long term auto loans.
  • 60% think vehicle leasing as a percent of total EV purchases will continue to grow.
  • 69% believe consumers are waiting to make big ticket purchases, such as vehicles, until after the presidential election.

About Credit Union Leasing of America

Credit Union Leasing of America (CULA) has been the leader in indirect vehicle leasing for credit unions for over 35 years. Founded in 1988, CULA provides best-in-class program assistance, analytics reporting, compliance support, dealer management tools and member services. The CULA indirect vehicle leasing program empowers credit union innovators to diversify their existing loan portfolios, improve yield and expand member services. Visit https://www.cula.com/ to learn more.

1Survey conducted just prior to recent Federal Reserve interest rate drop

2www.experianplc.com/newsroom/press-releases/2024/leasing-experiences-continued-growth-in-q2-2024--according-to-ne

Media Contact

Angela Jacobson, mWEBB Communications, 1 714-454-8776, [email protected], www.mwebbcom.com

SOURCE Credit Union Leasing of America

Modal title

57% of credit union respondents are feeling optimistic about the auto finance landscape through the end of 2024
57% of credit union respondents are feeling optimistic about the auto finance landscape through the end of 2024
34% of credit union respondents say they are already seeing signs of the liquidity crisis abating
34% of credit union respondents say they are already seeing signs of the liquidity crisis abating
CULA
CULA
57% of credit union respondents are feeling optimistic about the auto finance landscape through the end of 2024 34% of credit union respondents say they are already seeing signs of the liquidity crisis abating CULA

Contact PRWeb

  • 11AM ET Sunday – 8PM ET Friday
  • Contact Us

About PRWeb

  • About PRWeb
  • Partners
  • Partnership Programs
  • Editorial Guidelines
  • Resources

Why PRWeb

  • Why PRWeb
  • How It Works
  • Who Uses It
  • Pricing

Accounts

  • Create a Free Account
  • Log in
  • Contact Us

Do not sell or share my personal information:

  • Submit via [email protected] 
  • Call Privacy toll-free: 877-297-8921

Contact Cision

Products

About

My Services
  • All News Releases
  • Online Member Center
  • ProfNet
Cision Distribution Helpline
888-776-0942
  • Legal
  • Site Map
  • RSS
  • Cookie Settings
Copyright © 2025 Cision US Inc.