When auto lending volume expansion hits the Federal Reserve’s radar, it’s noteworthy.
That was yesterday, when several Federal Reserve districts reported auto lending expansion in the Beige Book, which is the Fed’s anecdotal economic report released eight times a year.
Supporting the fact that “most districts reported that … vehicle sales generally grew more strongly” during the most recent couple of months, the Fed highlighted that auto lending expanded in particular in the districts of Cleveland, Chicago, Dallas, and Philadelphia. There are 12 Fed districts in all.
There were subtle differences in the auto finance reports from these specific districts. In Cleveland, for example, Fed officials said an overall “modest” expansion in consumer lending, was “concentrated in auto lending and home equity products.”
But in Chicago, the report on auto lending was a bit more pronounced, citing “strong” demand from borrowers.
“Auto loan demand remained strong, and contacts again highlighted a trend of extending loan terms in response to already low spreads and highly competitive pricing,” according to the Fed.
The Fed next releases the Beige Book report on Dec. 2.
Learn more about auto lending trends at the Auto Finance Summit, Oct. 21-23 in Las Vegas.
