Customer Logins

Obtain the data you need to make the most informed decisions by accessing our extensive portfolio of information, analytics, and expertise. Sign in to the product or service center of your choice.

Customer Logins

My Logins

All Customer Logins
S&P Global Market Intelligence

  • S&P Global
  • S&P Dow Jones Indices
  • S&P Global Engineering Solutions
  • S&P Global Market Intelligence
  • S&P Global Mobility
  • S&P Global Commodity Insights
  • S&P Global Ratings
  • S&P Global Sustainable1
Close
Discover more about S&P Global’s offerings
Investor Relations
  • Investor Relations Overview
  • Investor Presentations
  • Investor Fact Book
  • News Releases
  • Quarterly Earnings
  • SEC Filings & Reports
  • Executive Committee
  • Corporate Governance
  • Merger Information
  • Stock & Dividends
  • Shareholder Services
  • Contact Investor Relations
Languages
  • English
  • 中文
  • 日本語
  • 한국어
  • Português
  • Español
  • ไทย
About
  • About Us
  • Contact Us
  • Email Subscription Center
  • Media Center
  • Glossary
Product Login
S&P Global Market Intelligence
  • Who We Serve
  • Solutions
  • News & Insights
  • Events
  • Product Login
  • Request Follow Up
  •  
    • Academia
    • Commercial Banking
    • Corporations
     
    • Government & Regulatory Agencies
    • Insurance
    • Investment & Global Banking
     
    • Investment Management
    • Private Equity
    • Professional Services
  • WORKFLOW SOLUTIONS
    • Capital Formation
    • Credit and Risk Solutions
    • Data & Distribution
    • Economics & Country Risk
    • Sustainability
    • Financial Technology Solutions
     
    • Issuer & IR Solutions
    • Leveraged Loans
    • Post Trade Processing
    • Private Markets
    • Risk, Compliance, & Reporting
    • Supply Chain
    PRODUCTS
    • S&P Capital IQ Pro
    • S&P Global Marketplace
    • China Credit Analytics
    • Climate Credit Analytics
    • Credit Analytics
    • RatingsDirect ®
    • RatingsXpress ®
    • 451 Research
    See More S&P Global Solutions
     
    • Capital Access
    • Corporate Actions
    • KY3P ®
    • EDM
    • PMI™
    • BD Corporate
    • Bond Pricing
  • CONTENT
    • Latest Headlines
    • Blog
    • Research
    • Videos
    • Podcasts
    • Infographics
    • Newsletters
    • Client Case Studies
    SECTOR-SPECIFIC INSIGHTS
    • Differentiated Data
    • Banking & Insurance
    • Energy
    • Maritime, Trade, & Supply Chain
    • Metals & Mining
    • Technology, Media, & Telecoms
    • Investment Research
    • Sector Coverage
    • Expert Directory
    More ways we can help
    NEWS & RESEARCH TOPICS
    • 2023 Big Picture Outlook
    • Credit & Risk
    • Cryptocurrency
    • Economics & Country Risk
    • Financial Services
    • Maritime & Trade
    • M&A
    • Sustainability & Climate
    • Technology
    See More
    • All Events
    • Webinars
    • Webinar Replays
    Featured Events
    WebinarM&A In Focus: Tech Acquisitions and the ‘New Normal’ in 2023
    • 02/08/2023
    • Live, Online
    • 11:00 am - 12:00 pm EST
    Webinar ReplaysAssessing the impact of the U.S. Government Accountability Office recommendations’ on Export Control Compliance at universities
    • 01/18/2023
    • On-Demand
    • 60 minutes
    ConferenceTPMTech
    • 02/23/2023
    • Hilton Long Beach Convention Center
  • PLATFORMS
    • S&P Capital IQ Pro
    • S&P Capital IQ
    • S&P Global China Credit Analytics
    OTHER PRODUCTS
    • Credit Analytics
    • Panjiva
    • Money Market Directories
     
    • Research Online
    • 451 Research
    See All Product Logins

Credit Union Rates Fall Below Banks and Captives

31 October 2022 Tom Libby

The Federal Reserve Bank's recent rate increases to curb inflation have quickly cascaded to the retail US auto industry. In fact, as shown below, average loan rates began climbing before the prime rate moved up. Back in January, the average loan rate increased .2 PP month-over-month to 4.3%, and it has been rising ever since, reaching 5.6% in July. Also, the concurrent increases in the prime rate and the average auto loan rate should not be surprising: the correlation coefficient between the two metrics is a very strong .95.

However, these rate increases have varied depending on the buyer's credit standing. While the most credit-worthy customers (781 - 850) have seen rates more than double from May 2020 to 4.4% this past August, households with the lowest credit scores (300-600) have actually seen a .1 PP rate decline to 10.6%. This lower tier of customers, though, still are paying a rate more than double that of the top tier.

Auto loan rates also vary depending on the lender type. Independents (5% of the loan business August 2022 CYTD) consistently have been charging substantially higher rates than the other types, and independents' rates have been steady since early this year. Banks (32%) and captives (35%), on the other hand, have been raising rates since January.

Credit union (29%) rates, similar to bank and captive rates from January 2019 through the end of last year, have not risen this year in the same manner as bank and captive rates. As a result, credit unions now offer the lowest average rates in the industry, including 4.7% in August versus 5.4% for captives and 6.2% for banks. Without the need to focus on profits, credit unions can pass on any internal surpluses to their customers via lower rates. Many credit unions also do not pay federal taxes, another reason for their lower rates.

----------------------------------------------------------------------------------------------------

Top 10 Industry Trends Report

This automotive insight is part of our monthly Top 10 Industry Trends Report. The report findings are taken from new and used registration and loyalty data.

The October report is now available, incorporating August 2022 CFI and LAT data. To download the report, please click below.

DOWNLOAD REPORT

Posted 31 October 2022 by Tom Libby, Associate Director, Loyalty Solutions and Industry Analysis, S&P Global Mobility


This article was published by S&P Global Mobility and not by S&P Global Ratings, which is a separately managed division of S&P Global.

Previous Automotive Post All Automotive

Related Posts

  • Top 10 auto tech trends to watch for in 2021
  • New EU trade commissioner warns of retaliation if vehicles tariffs raised
  • Ecuador's Foreign Trade Committee announces approval of zero import tariff on EVs

Explore

RELATED INDUSTRIES & TOPICS
  • Automotive
  • Automotive Consumer Financing
  • Automotive Market Statistics
  • Vehicle Sales/Registrations

Recommended for you

  • Model-level Autonomy Forecasts
  • Automotive Audience Solutions
  • MobilityInsight
  • Automotive Loyalty Analytics

Get the latest electrification insights from S&P Global Mobility

Take me there

Get insights straight from our experts

Access upcoming and on-demand webinars or events
Mobility Events
Subscribe to RSS Feed

Follow Us

Feb 02
SPGMobility@SPGMobility

Car-shoppers rejoice! Recovering production levels will bolster dealer stocks, while interest rate hikes and econom… https://t.co/PSEMy120wp

Feb 02
Jan 31
SPGMobility@SPGMobility

Register for our 2023 Automotive Loyalty Summit, where we will recognize the 2022 automotive loyalty award winners,… https://t.co/KLBRNzFrcb

Jan 31
Jan 31
SPGMobility@SPGMobility

In this month's Fuel for Thought podcast, we discuss what's shaping up in 2023 to be a story about demand considera… https://t.co/SeCTu4Wfud

Jan 31
Jan 31
SPGMobility@SPGMobility

Check out our latest case study with @cochrancars using Polk Audiences. They increased leads and site traffic whil… https://t.co/IvwJGme2WL

Jan 31
{"items" : [ {"name":"share","enabled":true,"desc":"<strong>Share</strong>","mobdesc":"Share","options":[ {"name":"facebook","url":"https://www.facebook.com/sharer.php?u=http%3a%2f%2fwww.spglobal.com%2fmarketintelligence%2fen%2fmi%2fresearch-analysis%2fcredit-union-rates-fall-below-banks-and-captives.html","enabled":true},{"name":"twitter","url":"https://twitter.com/intent/tweet?url=http%3a%2f%2fwww.spglobal.com%2fmarketintelligence%2fen%2fmi%2fresearch-analysis%2fcredit-union-rates-fall-below-banks-and-captives.html&text=Credit+Union+Rates+Fall+Below+Banks+and+Captives+%7c+S%26P+Global+","enabled":true},{"name":"linkedin","url":"https://www.linkedin.com/sharing/share-offsite/?url=http%3a%2f%2fwww.spglobal.com%2fmarketintelligence%2fen%2fmi%2fresearch-analysis%2fcredit-union-rates-fall-below-banks-and-captives.html","enabled":true},{"name":"email","url":"?subject=Credit Union Rates Fall Below Banks and Captives | S&P Global &body=http%3a%2f%2fwww.spglobal.com%2fmarketintelligence%2fen%2fmi%2fresearch-analysis%2fcredit-union-rates-fall-below-banks-and-captives.html","enabled":true},{"name":"whatsapp","url":"https://api.whatsapp.com/send?text=Credit+Union+Rates+Fall+Below+Banks+and+Captives+%7c+S%26P+Global+ http%3a%2f%2fwww.spglobal.com%2fmarketintelligence%2fen%2fmi%2fresearch-analysis%2fcredit-union-rates-fall-below-banks-and-captives.html","enabled":true}]}, {"name":"rtt","enabled":true,"mobdesc":"Top"} ]}
Filter Sort
  • About Us
  • Quality Program
  • Contact Us
  • Email Subscription Center
  • Press Releases
  • Careers
  • Corporate Responsibility
  • Our History
  • Investor Relations
  • Leadership
  • © 2023 S&P Global
  • Terms of Use
  • Cookie Notice
  • Privacy Policy
  • Disclosures
  • Do Not Sell My Personal Information