Article: 'Clunkers' Drives Auto Volume.(Lending)

Byline: Ray Birch, Correspondent

CINCINNATI-August wasn't a clunker for auto loan volume, according to credit unions that havea strong ties with car dealers.

Auto loan volume was up significantly through indirect channels thanks to Cash for Clunkers, a number of CUs told Credit Union Journal. But some are wondering if that boom may lead to a bust in the months ahead. At the $980-million General Electric CU here, CEO Patrick Taylor reported that his credit union financed 1,754 cars last month, representing a $30-million increase. "We normally finance about 800 to 1,000 cars a month," Taylor said.

Having relationships with 150 dealers in more than ...

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