Auto Loan Balances and Delinquencies Rise

Despite a 19% decline in auto sales over the last 3 months, balances on auto loans and leases are surging due higher priced vehicles and constrained supply. Auto loans also surged because used-vehicle prices had spiked. 

Balances on auto loans and leases increased by 2.2% in Q3 from Q2, and by 6.1% year-over-year, to a record $1.52 trillion, according to data from the New York Fed’s Household Debt and Credit Report.

The rate of all auto loans and leases – prime and subprime – that were 30 days and more past due rose to 6.2% in Q3, according to the New York Fed’s Household Debt and Credit. 

Source: wolfstreet.com