Outstanding auto loan balances hit $839.1 billion — an all-time high — in the second quarter, according to Experian Automotive data released this week.
The dollar amount of loan balances outstanding was up 11.7% from the previous year, according to Experian. However, loan delinquencies increased year over year, too. The 30-day delinquency rate inched up 1 basis point to 2.39% last quarter, and the 60-day rate grew 4 basis points to 0.62%.
“The rosy glow of perfect payment performance in the automotive space is beginning to tarnish,” said Melinda Zabritski, senior director of automotive finance for Experian, in a press release. “We’re starting to see a slight uptick in the number of consumers struggling to make their automotive payments on time; however, we have to keep in mind that these percentages are still extremely low. We’ll want to keep an eye on how consumers pay their bills in the coming months, as it may dictate the availability of credit in the future.”Like This Post