Business is on the rise for auto lenders.
Auto loan debt per borrower has maintained consistent growth for three consecutive years according to the latest TransUnion auto loan report, released on Monday. The report said that auto loan debt per borrower grew nearly 13%, or more than $1,900, since the upward spike started back in the first quarter of 2011.
Year over year auto loan debt per borrower rose 4.1% from $16,191 in Q1 2013, to $16,862 in Q1 2014.
Meanwhile, the delinquency rate for auto, meaning those 60 days or more delinquent on their auto loans, grew 1% in the first quarter 2014. Nonetheless, the delinquency rate remains below the first quarter average of 1.10% observed between 2008 and 2014.
“The continued increase in auto loan debt is a healthy sign that auto sales and the auto loan market continue to perform well,” said Pete Turek, vice president of automotive in TransUnion’s financial services business unit.
