Total outstanding U.S. auto loans reached a record high of $902.2 billion through April, an increase of more than 10% from the same time a year earlier, according to the latest Equifax National Consumer Credit Trends Report released Thursday. In that same time, the total number of auto loans outstanding is more than 64 million.
"Lenders are responding to record low delinquencies by offering great rates and terms, while consumers are responding to the improving economic conditions by making the decision to purchase newer vehicles. Additionally, subprime lending has grown across all sectors in 2014. This is good news as a fully functioning second-chance market is essential for a healthy economy," said Dennis Carlson, deputy chief economist at Equifax.
The report showed total U.S. outstanding auto loans passed $900 billion for first time. Even with the increase, delinquencies of 60-plus days remained at all-time lows and represented less than 1% of total outstanding balances, according to the credit bureau.
Equifax noted that originations and total outstanding balances for subprime auto loans - those made to customers with credit scores of 640 or below - hit recent highs. Subprime originations were 2.6 million units year to date through April, representing 32% of all auto loan originations. The total outstanding balance of subprime auto loans was $46.2 billion, the highest in eight years.
Overall originations year-to-date through April also were the highest since 2005, at $163.5 billion, Equifax said.
Other highlights from the most recent Equifax data include:
Bank-issued credit card
The total balance of bank card credit outstanding increased by 2.2% in the second quarter, and by 2.6% year over year;
The total number of new cards issued through the first four months of 2014 was 15.5 million, a six-year high and an increase of 17.2% from same time a year ago;
Similarly, the total dollar amount of new credit originated in that same time is $77.4 billion, also a six-year high and an increase of 24.1% from same time a year ago;
Accounts 60-or-more-days past due (excluding write-offs) as a percentage of total loans is 1.60%, a year-over-year decrease of 11.7% and a five-year low.
The total balance of first mortgages declined by 2.5% in the second quarter, but grew by 0.3% compared to the previous year;
Delinquent first mortgages, those 30-days or more past due, represent less than 4.78% of outstanding balances, a decrease of 22.9% from same time a year ago;
Similarly, the total balance of first mortgages 90-days past due or in foreclosure is less than $220 billion, a six-year low and a decrease of more than 36.8% from same time a year ago.
Home Equity Revolving
The total balance outstanding on home equity revolving loans continues to decline, falling 5.4% in June from the same time last year;
The total limit of new credit year-to-date in April is 33.3 billion, an increase of 17.4% from same time a year ago, and the highest since 2008;
In that same time, more than 333,000 new loans were originated, realizing a five-year high and a year-over-year increase of 12%.