For the first time in 13 years, credit unions have grown theirauto loan portfolios past the high of 12.9% annual growth thatoccurred in March 2001.

Several factors contributed to this recovery, according to DaveColby, chief economist with CUNA Mutual Group.

“Stronger employment and income growth, the recovery in newlight vehicle sales, fewer financing subsidies from vehiclemanufacturers and growing replacement demand due to an agingvehicle fleet, just to name a few,” said Colby in CUNA Mutual's MayCredit Union Trends Report, which tracked data through March.

The national average new vehicle loan rate was 3.04% in March,down nine basis points year-to-date, 29 basis points during thepast year and 336 basis points or 52% since the beginning of therecession, the data showed.

March's used vehicle loan rate was 3.72% and it has declined ina pattern very similar to new vehicle loan rates, Colby said.

Driven by auto loans, total loans for the credit union industrytopped the $669 billion mark in March. The 12.9% annual growthaccounted for nearly 45% of all credit union loan growth sinceMarch 2013 and 69% on a YTD basis.

“Credit unions positioned themselves well for the recovery bymaintaining consistent underwriting standards, expandedpoint-of-purchase financing options, and continuously lowered rateson new and used vehicle loans,” Colby said.