With a combination of used vehicles reaching their maturity markfor some car drivers and record financials from manufacturers thathave emerged from a dismal scene, 2013 may shape up to be a solidyear for auto lending growth.

Through September, the latest credit union industry data onrecord, vehicle loan growth at credit unions was estimated to beclose to 9% with new vehicle loans up 8.3% and used vehicle loansup 9.4%.

The differences are stark for the same period in 2011 whencredit unions were in the midst of a negative 0.1% contraction whena 9.3% drop in new vehicle loans was offset by a 5.6% increase inused vehicle loans.

Roughly 48% of all credit union loan growth since August 2011has been attributable to vehicle loans. Currently, 29.5% of allcredit union loans are vehicle loans, up from 28.8% at this timelast year.

Those record stats bode well for the industry in 2013, as somemay see a renewed focus on building dealer relationships andservice particularly as independent dealers boost their efforts toform partnerships.

Indirect loans helped to boost credit unions' overall vehicleloans in 2012. That trend is expected to continue next year aspoint-of-purchase financing is poised to help grow loanportfolios.

Industry experts have also said there may be continued pressureto make money on ancillary products, which could potentially favorlenders who allow higher carries.

Leasing is also expected to continue to grow with a large numberof leasing customers return to the same dealership where they gottheir last car.

Despite the financial hardships that members and otherexperienced over the past few years, auto loan delinquency ratereached its lowest level since TransUnion began tracking the datain 1999. That trend may continue in 2013 as the demand for both newand used vehicles and higher used vehicle values is most likely tocarry over into the New Year.