In the third quarter of 2022, credit unions earned the largest share of automotive financing in the U.S., surpassing banks and other lenders in the amount of auto loans and leases produced, according to Experian.
In their “State of the Automotive Finance Market” paper, Experian reported that credit unions are financing over 30% of all auto loans, topping the market for the first time ever.
“As not-for-profit financial cooperatives, credit unions reinvest funds into the communities they serve by providing members with highly competitive loan rates as well as other vital products and services that exist to support their financial wellbeing,” said Todd Fortner, president and CEO of TVFCU (Tennessee Valley Federal Credit Union). “This unprecedented achievement signifies the growth of credit union awareness and participation across the country.”
The report notes that credit union-funded auto loans grew by nearly 8% from 2021 while banks, the second-highest auto lender, lost about 6.75% of the market share.
TVFCU’s growth in auto loans echoes the national trend. The credit union’s 2022 auto loan production – and projections for December – indicate that TVFCU will outperform their 2021 figures by nearly $14.5 million – a 4% increase. As the market continues to stabilize and vehicle inventory improves, the credit union anticipates even more growth in 2023.
“TVFCU started in 1936 when 57 Chattanooga TVA employees pooled $500 to create the member-owned credit union,” said Fortner. “86 years later, we’re still working to expand the mission of excellent member service through accessible, beneficial products and services and intentional community involvement and support. It’s encouraging to see that people across the U.S. are continually recognizing the value of credit unions and contributing to the mission.”
For more information about the credit union, visit tvfcu.com or call 423-634-3600.