Auto Loan & Lease Origination Data Reported as of August 2019

Auto Loan Originations Observations

Originations through June 2019 reported as of August 2019

  • 12.3 million auto loans, totaling $286.2 billion, have been originated year-to-date. This is a 0.6% decrease in accounts and a 2.6% increase in balances over this time last year.
  • Auto loans represent 86.6% of all auto account originations and 90.0% of all auto origination balances YTD.
  • 2.68 million auto loans have been originated YTD to consumers with a VantageScore® 3.0 credit score below 620. These are generally considered subprime accounts. This is a 3.1% decrease from June 2018. These newly-issued loans have a corresponding total balance of $50.4 billion, a 1.3% increase year-over-year.
  • Through June, 21.9% of auto loans were issued to consumers with a subprime credit score, accounting for 17.6% of origination balances. In 2018 YTD the account share was 22.4% and balance share was 17.8%.
  • The average origination loan amount for all auto loans issued in June 2019 was $24,134. This is a 6.6% increase over June 2018. The average subprime loan amount was $19,545. This is an 8.6% increase compared to June 2018.

 

Auto Lease Originations Observations

Originations through June 2019 reported as of August 2019

  • 1.89 million auto leases, totaling $31.7 billion, have been originated year-to-date. This is a 3.9% decrease in accounts and a 1.3% decrease in balances from this time last year. Auto leases accounted for 13.4% of all auto accounts originated through June and 10.0% of balances.
  • 166,137 auto leases have been originated YTD to consumers with a VantageScore® 3.0 credit score below 620. These are generally considered subprime accounts. This is a 7.2% decrease from June 2018. These newly-issued leases have a corresponding total balance of $2.96 billion, a 4.1% decrease year-over-year.
  • Through June, 8.8% of auto lease accounts and 9.3% of total balances were issued to consumers with a subprime credit score.
  • The average origination balance for all auto leases issued in June 2019 was $16,779. This is a 1.9% increase from June 2018. The average subprime lease amount was $18,192, a 4.5% increase over a year ago. Note that lease origination values reflect the contract amounts only and exclude expected vehicle residual values.

 

“According to this data, the number of loans originated is relatively stable, yet loan balances continue to increase. This is slightly different from leases, which are showing a falling number of lease originations but a more moderate rise in balances issued,” said Jenn Reid, Equifax’s vice president of Automotive Marketing and Strategy. “These numbers indicate that the automotive market in financing originations has been stable while the amount financed has increased throughout 2019 heading into the final months of the year. The rising balances are most likely a result of a stronger shift to trucks/SUVs when shopping.”

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