Auto loan balances reach 48-month high
Highest since January 2009
Consumers continue to purchase and finance cars at a quick pace, Equifax said in a recent report.
According to Equifax’s most recent National Consumer Credit Trends Report, which includes data through the end of January, outstanding auto loan balances are at $782 billion, a 48-month high.
This is the highest mark for outstanding auto loan balances since way back in January 2009.
“Sales of new cars and light trucks are rising steadily, though they are still well below pre-recession levels of roughly 17 million units,” Amy Crews Cutts, Equifax Chief Economist, said in a statement. “Yet auto lending, including leases, is now back to pre-recession levels, driven in part by the very attractive interest rates being offered on these loans and a gradual increase in willingness to lend to less-than-perfect credit borrowers.”
Number of loans at 42-month high
Along with the 4-year high in auto loan balances, the number of auto loans (59 million) came in at a 42-month high in the January data.
Between January and November 2012, $387.7 billion in auto loans originated (for both new and used cars). This represents a 72-month high.
Additionally, the $387.7 billion total amount in originated auto loans between January and November 2012 represented almost 46 percent of all consumer credit that originated in that time frame ($825 billion).
The number of new auto loans in that same time frame (19.9 million) also reached a six-year high. This refers to auto loans originated for both new and used cars.
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Posted in: Loans