Auto loans top $1 trillion; lease balances skyrocket

Auto loans top $1 trillion; lease balances skyrocket

Auto loans climbed 11 percent in the first quarter of 2016, passing $1 trillion for the first time on record, said Experian Automotive. Leases grew even faster, increasing by 27.5 percent to a record $76.9 billion.

–Automotive financing certainly has started off the year with a bang, seeing steady growth in balances and loan volumes throughout the first quarter,” said Melinda Zabritski, senior director of automotive finance for Experian. –With more and more consumers relying on financing, it is important for lenders to keep a close eye on delinquency trends to ensure the market remains healthy.”

Banks continued to hold the top position in auto loan and lease volume, growing 7.9 percent over first-quarter 2015. But finance companies saw the largest growth in market share, growing 25.6 percent.