The U.S. auto lending market is continuing to grow, according to the latest data from credit reporting agency Equifax Inc. The number of car loans increased by 21 percent during the first quarter of this year compared to the same time last year.
“While some sectors of the economy – most notably housing – continue to struggle, the auto lending sector has displayed positive gains based on loosening of credit to both prime and subprime borrowers paired with improvements in consumer payment behavior, which is reflected in the declining number of auto loan delinquencies,” said Michael Koukounas, Senior Vice President of Special Client Services for Equifax in a press release.
During the first three months of 2010, there were $87 billion in new auto loans made in the U.S. The biggest monthly figure was from March, when there were $33.6 billion in loans originated, up from $30. That figure is closing in on the pre-recession high of $37.4 billion in March 2007. With $1.8 million in loans made this March though, the month did surpass the $1.6 million loaned during the “Cash for Clunkers’” program from the summer of 2009.
The average car loan amount has also grown slightly on a yearly basis, however the average monthly payments have dropped. Among bank, credit union and savings and loan-originated auto loans, the average total has rose to $18,661 from $18,463in the first quarter of 2011. The average monthly payment among those same institutions dipped to $366 in the first quarter of this year from $377 last year.
Perhaps the best news is that auto delinquencies and write-offs are falling and have dropped close to pre-recession levels, demonstrating that consumers are getting back on their feet and able to keep up with their financial commitments again.
Similar Posts:
- Is Sallie Mae Beating The Odds?
- Auto Loan ABS Sitting Pretty
- Americans Are Getting Fiscally Fit, and It Shows
- Big Banks are (Slowly) Opening the Lending Spigots
- Credit Card Late Payments Hit Pre-Recesion Lows
