More consumers getting auto loans says TransUnion
More than five million additional consumers had an auto loan in second-quarter 2016 compared with a year earlier, according to TransUnion. Thatês a 7 percent increase.
The average loan balance grew 2.7 percent, reaching $18,177, the highest level post-recession. Thatês up from $17,699 a year earlier.
In recent years, the auto industry has experienced strong growth in truck and SUV sales, which we believe is one of the drivers for higher average auto balances, said Jason Laky, automotive and consumer lending business leader for TransUnion. Strong economic fundamentals particularly low gas prices and rising employment are contributing to the continued growth in the auto sector.
The auto delinquency rate increased to 1.11 percent from 1 percent a year earlier. But Laky said the rate had been at an all-time low, and the slight rise was not a cause for concern.Download Bulletin PDF