Navy Federal: May sets record for consumer loan originations
Citing higher member optimism regarding personal finances and the economy, Navy Federal Credit Union booked $753 million in consumer loan originations during May, the best month in the credit union’s 80-year history. A majority ($2.3 billion) of Navy Federal’s record $3.1 billion in consumer loan originations so far in 2013 are auto loans.
“Our members are feeling more confident about their financial health and are looking to buy large items such as new vehicles,” said Tony Gallardy, vice president, Consumer and Credit Card Lending, Navy Federal.
Navy Federal Corporate Economist Alan MacEachin points to two key factors regarding the credit union’s record year-to-date in auto loan originations — including $527 million in May: historically low interest rates (as low as 1.49% at Navy Federal) and the average age of vehicles in the U.S. at greater than 11 years.
“Major automakers reported significant sales increases in May compared to last year, further demonstrating that consumers are taking advantage of low rates and replacing older vehicles,” said MacEachin.
There’s also mounting evidence that consumers may be overcoming this year’s federal spending cuts and the expiration of the payroll tax cut. While consumer confidence indices are still below their pre-recession peaks, MacEachin said they currently stand at their highest levels in several years.
“An improving job market, stabilizing-to-increasing real estate values, and surging stocks are creating a greater sense of wealth and confidence among U.S. consumers,” said MacEachin. “These positive trends bode well for increased consumer spending and stronger economic growth.”
“We encourage all members to visit us to take advantage of the outstanding rates and service we provide,” said Gallardy. “Serving them is a privilege, and we’ll continue to offer the best, affordable lending products to meet their increased needs.”
For information about Navy Federal or to apply for a loan, go to http://www.navyfederal.org, call 1-888-842-6328, or visit one of the credit union’s 229 branches worldwide.