Posted by Ron Jooss
For the first time in a while, U.S. car ownership declined in 2009. What’s more, it looks like it could well be the beginning of a trend. As the United States slowly drags itself out of a recession and more environmentally friendly practices—such as more use of rapid transit and light rail systems—work their way into American culture, the next economic cycle appears as if it will be much different than the last.
There might even be a sociological aspect to this: Experts surmise ("guess" might be a better word) kids are now spending more time on social networking Web sites like Facebook, than driving around together in cars.
Whatever the reasons, from our perspective, that begs the question, what does this mean for credit unions? The auto loan market will be more competitive going forward, and it may never be the same. (Then again, no one does car loans like credit unions.) If Americans are buying fewer cars, they’re probably spending less as well. The concept of partnering with members to offer financial advice and help them save and reach their goals seems like a wise one. It will be interesting to see what other economic—and social—trends emerge as we crawl out of this recession.
