SAN FRANCISCO–The total balance on auto loans in the U.S. at the end of 2014 was $975-billion, or 33.2% of all total outstanding non-mortgage consumer debt, according to the latest Equifax National Consumer Credit Trends Report.
That report found the level of auto loan debt is at an all-time high and is an increase of 9.3% from same time a year ago. In addition, the total number of auto loans outstanding is nearly 71 million, a 6.5% increase from December 2013, Equifax said.
“While write-offs have increased slightly from last year, delinquency rates remain near record lows,” said Dennis Carlson, deputy chief economist at Equifax. “Consumers are excited about both the quality and craftsmanship of the vehicles available today as well as the great financing available. he improving economic situation has finally afforded consumers the opportunity to rekindle their love affair with the automobile.”
Other highlights from the most recent Equifax data include:
- The total number of new loans originated year-to-date in October is 21.2 million, an eight-year high, while the total balance of new auto loans is $434.1 billion, an increase of 7.1% from same time a year ago.
- The total number of new loans originated year-to-date in October for nonprime borrowers, or consumers with risk scores of 640 or lower, is 6.5 million, representing just under 31% of all auto loans originated today, according to Equifax.
- Similarly, the total balance of newly originated nonprime auto loans in that same time is $119.0 billion, an eight-year high and representing 27.4% of the total balance of new auto loans.
- In December, serious delinquencies on auto loans represent 1.10% of total outstanding balances, a slight increase over the previous month, but a decrease of 6% from December of 2013.
- Additionally, annualized write-offs represent 2.64% of total outstanding balances, a 5.3% increase over December of 2013.
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