22/5/17: U.S. Autoloans Market: Careless Lending, Defaulting Buyers

Auto loans are now coming through as a growing concerns area in terms of U. S. household credit. Auto loans originations have risen, in total volume from $123.9 billion in 1Q 2016 to $132.4 billion in 1Q 2017, an all-time high for 1Q period on record. Total volume of auto loans debt outstanding is at $1,167 billion, up on $1,071 billion in 1Q 2016 and at an all-time record. Year on year growth in auto loans is at 9%.
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However, origination has been more subdued in 1Q 2017 for subprime loans, with issuance for credit score below 620 falling to $25.9 billion in 1Q 2017 compared to $26.9 billion a year ago. Likewise, near-sub-prime originations (credit scores 620-659) also declined, from $16.1 billion in 1Q 2016 to $15.6 billion in 1Q 2017.

This post was published at True Economics on Monday, May 22, 2017.