The balance of auto loans through June was $902.2 billion, an all-time high, according to Equifax Inc.’s National Consumer Credit Trends Report, released today. Loan balances were up 10% from the same time a year ago.
“Auto lending continues to thrive, accounting for more than 50% of all new non-mortgage lending through April,” Dennis Carlson, deputy chief economist at Equifax, said in a press release. “Lenders are responding to record low delinquencies by offering great rates and terms, while consumers are responding to the improving economic conditions by making the decision to purchase newer vehicles. Additionally, subprime lending has grown across all sectors in 2014.”
Through April, lenders originated 8.1 million auto loans — an eight-year high, according to the report. Of those originations, 2.6 million loans — 32% — were made to subprime borrowers, those with credit scores of 640 or lower.
