Trends

Auto loan balances at record high $782.9B

Third quarter outstanding auto loan balances are at a record high, according the Experian Automotive, which began recording the data seven years ago.

Outstanding balances on automotive loans reached $782.9 billion, up from $103 billion in the third quarter of 2012.

Thirty-day loan delinquencies were down 3.4% from 2012 to 2.58% 2013 from 2.67% the same time last year. Sixty-day delinquencies remained flat.

Credit unions also showed auto loan growth, according to Credit Union National Association (CUNA) research and statistics. New-auto loans increased to 10.8% of total loans for the third quarter of 2013, compared with 10.4% in the third quarter of 2012. Used-auto loans rose to 19.8% of total loans, compared with 19.1% for the same period in 2012.

Auto loan balances are growing nationwide, according to the Experian report. States with the fastest percentage growth year over year included California (29.3%), Texas (26.3%), and Nevada (26.%). The states with the slowest growth rates year over year were Hawaii (12.4%), Wyoming (12.3%), and Michigan (6.8%).

States with the steepest decline in the loan balances currently 30 days delinquent year over year are Hawaii (12.75%), Vermont (11.69%), and Oregon (11.64%). States with the biggest jump in 30-day automotive loan balance delinquencies year over year included Rhode Island (18.53%), Wyoming (11.98%), and Alaska (10.24%).

Other findings:

  • Outstanding loans in the nonprime, subprime, and deep-subprime segments were up slightly (36% from 35.9% in the third quarter of 2012);
  • The percentage of loan dollars 30 days delinquent rose slightly (2.17% from 2.16%);
  • The percentage of loan dollars that are 60 days delinquent rose slightly (0.52% from 0.5%); and
  • The average charge-off amount for bad loans increased to $7,770 from $7,026.