Auto loans made up about one-third of all consumer non-mortgage debt in the U.S., according to consumer data firm Equifax.
The firm's National Consumer Credit Trends Report revealed the total balance of auto loans in December 2014 stood at $975 billion. This is an all-time high and 9.3% higher than the total auto loan balance in December 2013.
“The automobile industry had a strong year in 2014, selling more than 16.4 million new cars,” Dennis Carlson, deputy chief economist at Equifax, said. “Consumers are excited about both the quality and craftsmanship of the vehicles available today as well as the great financing available. The improving economic situation has finally afforded consumers the opportunity to rekindle their love affair with the automobile.”
Carlson said, “2015 is going to be an even more revved up year for the industry and for Automotive Services at Equifax, as we enter the New Year with a market full of eager-to-buy consumers and lenders who are armed with a more complete view of consumers' financials than ever before.”
Equifax also reported that, as of October 2014, 6.5 million auto loans or roughly 31%, went to borrowers with credit scores of 640 or below.
The total balance of newly originated nonprime auto loans in that same time period came in at $119.0 billion, which was an eight-year high representing 27.4% of the total balance of new auto loans, according to Equifax.
The firm said December had serious delinquencies on auto loans representing 1.10% of total outstanding balances but was a decrease of 6% from December 2013.
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