Credit union increased their market share of auto financing in the fourth quarter of 2011 compared to the prior year, according to a report released by Experian.
Credit unions accounted for 17.34 percent of all autos financed in the fourth quarter of 2011, which is comparable to the market share for the captive auto finsnce companies. Credit unions had 11.04 percent of the new vehicle market and 21.10 percent of the used car market.
According to the Experian report, 33.2 percent of all credit union auto borrowers were nonprime or below in the fourth quarter with 11.09 percent subprime and 3.88 percent deep subprime (a credit score below 550). In comparison, banks reported a slightly higher percentage of subprime and deep subprime borrowers (16.02 percent versus 14.97 percent).
The average loan to value (LTV) for new car loans financed by credit unions in the fourth quarter was 112.39 percent and for used car loans, the LTV was 150.48 percent (the highest among all lenders).
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