SCHAUMBURG, Ill. (11/5/15)--Outstanding auto loan balances have climbed more than 50% since reaching their lowest point since the financial crisis in 2010, according to a new report from Experian.
In the third quarter, balances reached $968 billion, a $98 billion jump from the previous year and a record high.
“Continued growth in the automotive finance market is a clear sign of improved consumer confidence over the past few years,” said Melinda Zabritski, Experian senior director of automotive finance. “Since bottoming out in the recession, automotive sales have rebounded steadily, which is a good sign for consumers, automotive manufacturers, lending organizations and the overall economy.”
Zabritski added that the success in the industry has been sustained by consumers who have stayed on top of their car payments.
“If they can continue to manage their financial obligations and make timely payments, the automotive industry can continue to flourish and grow for quite some time,” she said.
Consumers largely have kept delinquencies at bay, as 30-day delinquencies fell to 2.5% from 2.7% on a year-over-year basis in the third quarter. Furthermore, 60-day delinquencies slipped to 0.73% from 0.74% over that same stretch.
The report also found that super-prime loans posted the largest increase in volume on an annual basis at 8.3%, while subprime and nonprime loans rose 7.8% and 7.7% respectively.