BURTON, Mich. (8/1/12)--Family Community CU in Burton, Mich., has reported an ongoing 12% to 15% increase in auto loans during the past two years amid more relaxed credit conditions for consumers looking for auto loans.
On a national level, credit reporting agency Equifax reports auto lending has risen to a six-year high (Saginaw News July 29).
That's because as the economy recovers, more people can afford more and take on new financial responsibilities, Daryl Toor, Equifax assistant vice president of public relations, told the newspaper.
The credit union has started a new auto-loan marketing campaign. The credit union fully underwrites the loans, measures a member's ability to pay, calculates which members have troubled credit, and assesses the likelihood the credit union will get paid back on its loan, Elizabeth Warden, the credit union's vice president of lending and marketing, told the paper.
Family Community CU more readily lends to people with "bruised credit" for auto loans than for unsecured loans that have no collateral or security involved, Warden added.
In the past three years, auto loans nationwide have nearly doubled to $52.5 billion in March from $26.9 billion in March 2009, Equifax said.