Auto loan balances hit record high of $902 billion
The total balance of auto loans nationwide has reached a record high of $902 billion, reports Equifax an increase of more than 10 percent from a year ago. The total number of outstanding auto loans is more than 64 million. Subprime lending has grown across all sectors this year.
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 decisions to purchase new vehicles, said Dennis Carlson, deputy chief economist at Equifax.
Other record-setting figures from the Equifax report:
« More than 8 million new loans were originated in the first four months of the year an eight-year high.
« An impressive 2.6 million subprime auto loans were originated in that period, representing 32 percent of all auto loans issued in those four months.
« The total balance of subprime auto loans is $46.2 billion, an eight-year high, representing 28 percent of the total balance of new auto loans.
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