SAN DIEGO — Credit unions are increasingly optimistic about growth in their auto finance portfolios despite ongoing concerns over vehicle affordability, inflation and rising delinquencies, according to a new survey by Credit Union Leasing of America (CULA).
CULA reported that 91% of credit union professionals surveyed expect their auto finance portfolios to either grow or remain stable over the next 12 months, with 67% anticipating growth and 24% expecting no change. Only 9% said they foresee a decline.
The survey found that a majority of respondents remain optimistic about the auto finance market over the next six months, although nearly half described themselves as apprehensive rather than pessimistic. According to CULA, 52% of respondents expressed optimism, while 47% cited concerns about economic conditions.
Rising Vehicle Prices Remain Top Concern
According to CULA, credit unions identified increasing vehicle prices as the most likely development in the automotive market during the next year.
Among survey respondents:
- 77% said vehicle prices will continue to increase
- 46% expect interest rates to decrease
- 44% anticipate tighter credit standards
- 53% do not expect tariff-related uncertainty to continue influencing consumer vehicle purchasing decisions through 2026.
Rates & Optimism
CULA said declining interest rates were the leading factor contributing to optimism, cited by 57% of respondents, followed by the availability of financing products designed to improve affordability for consumers, cited by 50%.
At the same time, CULA reported that credit unions expressing apprehension pointed to continued inflation, financial uncertainty and rising delinquencies as their primary concerns.
“Our survey from summer 2025 showed that credit unions expected vehicle prices to increase, and they were certainly right about that,” CULA President Ken Sopp said in a statement. “As concerns about tariffs have given way in 2026 to worries about delinquencies, inflation, and affordability, credit unions, nevertheless, expect their auto finance portfolios to grow, along with the number of their members opting for leasing.”
Leasing Expected to Gain Momentum
CULA said affordability concerns are driving increased interest in vehicle leasing among credit union members.
According to the survey:
- 72% of respondents expect more members to choose a vehicle lease rather than a loan during the next six months.
- 98% cited leasing’s combination of affordability and flexibility as the primary reasons members choose to lease.
CULA noted that the average monthly lease payment is approximately $151 lower than the average loan payment.
The organization also pointed to data from the latest Experian Automotive report showing that 24% of new vehicles purchased during the first quarter of 2026 were leased. According to CULA, its survey suggests that trend is likely to continue as consumers seek lower-cost financing alternatives.
Iran Conflict Not Yet Altering Outlook
CULA said it conducted a follow-up survey in May after tensions involving Iran escalated.
According to the organization:
- 38% of respondents expressed concern about the potential impact of the Iran situation.
- 62% said they remain optimistic or that the conflict had not yet affected their outlook for auto finance.
“Credit unions are used to weathering the ups and downs of the macroeconomic landscape and never has that been truer than today,” Chris Harper, CULA’s director of business development, said in a statement.
Harper said rising gasoline prices and potential supply-chain disruptions tied to the conflict could place additional upward pressure on vehicle prices, which survey participants identified as a significant concern. Nevertheless, he said the survey demonstrates that credit unions remain focused on financial products, including leasing, that can help members navigate economic uncertainty.
Survey Methodology
CULA said its “State of the Auto Finance Landscape” snapshot survey was conducted online among credit union professionals during the second quarter of 2026. The follow-up question regarding the Iran conflict was fielded in mid-May among a sample of survey participants.
