About midway through 2018, the drastic falloff in auto lending predicted by some auto lending industry analysts—dubbed “carmageddon” by some—hasn’t come to pass. Vehicle sales are still robust, reflecting a slower-than-expected rise in the U.S. prime rate. Even so, a “hold the line—everything’s fine,” attitude could be a strategic mistake.
Don’t take your auto loan portfolio growth for granted, especially if you depend on low-margin indirect lending volume. Credit Union Management asked a group of auto lending experts for ideas about how to position your auto lending program for success, whether or not a true market slowdown hits.