Rising Vehicle Prices, Delinquencies Temper Credit Union Optimism In Auto Finance
By CU Today Staff —
SAN DIEGO—Credit unions are heading into the second half of 2026 expecting growth in auto finance, but a new Credit Union Leasing of America (CULA) survey suggests the opportunity is being shaped less by rate and tariff concerns than by the affordability squeeze facing members.
CULA said 91% of credit union professionals surveyed expect their auto portfolios to grow or remain flat over the next year, including 67% who expect growth. Only 9% expect a decline. At the same time, 47% described themselves as apprehensive about the next six months, citing inflation, financial uncertainty and rising delinquencies.
The biggest concern is vehicle affordability. Seventy-seven percent of respondents said vehicle prices will continue to rise, while 44% expect credit standards to tighten. That combination could make auto lending more difficult even as member demand remains strong.
The survey also points to leasing as a growing credit union opportunity. CULA said 72% of respondents expect more members to choose a lease over a loan in the next six months, with 98% citing leasing’s affordability and flexibility as the reasons members choose that option.
Ken Sopp, president of CULA, said affordability concerns have replaced last year’s focus on tariffs and interest rates, but credit unions still expect auto portfolios to expand. He noted the average lease payment is $151 lower than the average loan payment.
CULA said the Iran conflict has not yet significantly changed the outlook, though 38% of a follow-up sample expressed concern about its potential impact. Chris Harper, CULA’s director of business development, said higher gas prices and supply-chain disruptions could add pressure to vehicle prices, making affordability-focused products a larger priority for credit unions.
Originally reported by CU Today.