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Outstanding balances on automotive loans and leases crossed $1 trillion

Staff writer ▼ | August 11, 2015
According to Equifax National Consumer Credit Trends Report, the total amount of outstanding balances on automotive loans and leases has crossed the $1 trillion mark with finance companies growing originations more quickly than commercial banks.
Automotive loans
Equifax   National Consumer Credit Trends Report
As of June 2015, the total outstanding balances on auto loans and leases comes in at $1.021 trillion, a year-over-year increase of 10.5%. Additionally, the number of outstanding accounts has increased 8.0% from a year ago to 73.7 million.

While auto loan balances through June 2015 are growing at relatively similar rates for both banks and finance companies (10.1% and 10.2% year-over-year respectively), the latter is considerably outpacing the former in auto leasing.

The report found that finance company lease portfolios are more than seven times the size of bank lease portfolios. Finance companies are also growing originations faster than banks with 54.2% of all new auto accounts and 51.8% of dollar originations through April 2015 coming through finance companies.

More than 9 million auto loans, totalling $182.9 billion, have been originated through April 2015. This is a 5.8% increase in accounts and an 8% rise in balances compared to the same time as last year. These are the highest levels for this time period since Equifax began tracking this data.

2.12 million auto loans to consumers with an Equifax Risk ScoreSM below 620, generally considered subprime accounts, have been originated through April 2015, a 9.6% increase over last year.

In 2015 through April, 23.5% of auto loans were issued to consumers with a subprime credit score, a slight increase over the 22.7% seen over the same time period last year.

The average amount of all auto loans issued in April 2015 was $20,800, which is a 3.65% increase over April 2014, while the average amount for a subprime loan increased 3.74% to $18,200.