Originations through March 2018 reported as of May 2018

Auto Loan Originations Observations through March 2018 reported as of May 2018:

  • 5.82 million auto loans, totaling $130.6 billion, have been originated year-to-date. This is a 2.0% decrease in accounts and a 0.1% decline in balances from this time last year.
  • Auto loans represent 87.2% of all auto account originations and 90.3% of auto origination balances YTD.
  • 1.37 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 7.3% decrease from March 2017. These newly-issued loans have a corresponding total balance of $24.1 billion, a 6.8% decrease year-over-year.
  • Through March, 23.5% of auto loans were issued to consumers with a subprime credit score, and they accounted for 18.5% of origination balances. In 2017 YTD the account share was 24.8% and balance share was 19.8%.
  • The average origination loan amount for all auto loans issued in March 2018 was $22,693. This is a 3.5% increase over March 2017. The average subprime loan amount was $18,033. This a 2.7% increase compared to March 2017.

 

Auto Lease Originations Observations through March 2018 reported as of May 2018:

  • 849,600 auto leases, totaling $13.96 billion, have been originated year-to-date. This is a 12.7% decrease in accounts and a 13.3% decrease in balances, from this time last year. Auto leases accounted for 12.7% of all auto accounts originated through March, and 9.7% of balances.
  • 87,140 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 10.2% decrease from March 2017. These newly-issued leases have a corresponding total balance of $1.50 billion, a 9.9% decrease year-over-year.
  • Through March, 10.3% of auto leases were issued to consumers with a subprime credit score. In 2017 through March the share was 10.0%.
  • The average origination balance for all auto leases issued in March 2018 was $16,586. This is a 0.14% increase over March 2017. The average subprime lease amount was $17,394, a 1.15% increase over a year ago. Note that lease origination values reflect the contract amounts only and exclude expected vehicle residual values.

 

"While we continue to see a slightly fewer originations compared with a year ago, we're also seeing somewhat higher loan origination amounts on loans compared with a year ago, illustrating that shoppers are financing more of the vehicle," said Gunnar Blix, Deputy Chief Economist for Equifax. "We see a slight pullback in lease activity from a year ago, but the average origination balance on leases has remained relatively unchanged from a year ago.  For both loans and leases, the subprime share of lending continues to decline."

Please let me know if you have any questions or if you'd like to set up a time to speak with Gunnar Blix from Equifax.

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