Auto Loan and Lease Balances Top $1 Trillion, Equifax Reports
The auto finance industry originated nine million auto loans through the first four months of year, totaling $182.9 billion. Equifax said these were the highest levels for this time of year since it began tracking auto finance data.
ATLANTA — Equifax reported this week that the total amount of outstanding balances on automotive loans and leases has crossed the $1 trillion mark, with finance companies leading the way.
As of June 2015, total outstanding balances on auto loans and leases reached $1.021 trillion, a year-over-year increase of 10.5%. Additionally, the number of outstanding accounts has increased 8% from a year ago to 73.7 million.
“Strong sales numbers in both the new-car and used-car markets, coupled with the availability of quality financing for consumers are a few of the main reasons the industry has reached the one trillion-dollar mark,” said Dennis Carlson, deputy chief economist at Equifax. “It clearly reflects that the improving economy has provided the impetus for consumers to replace their aging vehicles and begin to satisfy their pent-up auto demand.”
While auto loan balances through June 2015 are growing at relatively similar rates for both banks and finance companies (10.1% and 10.2% year over year, respectively), the latter is considerably outpacing the former in auto leasing. According to Equifax, finance company lease portfolios are more than seven times the size of bank lease portfolios. Finance companies are also growing originations faster than banks, with 54.2% of all new auto accounts and 51.8% of dollar originations through April 2015 flowing through the segment.
“The captive auto finance companies are supporting sales for the manufacturers, and dealers continue to work with independent auto finance companies to find the right loans for their customers, particularly in the non-prime space,” Carlson noted. “This combination has led to finance companies growing slightly faster than the commercial bank segment.”
According to Equifax, more than nine million auto loans, totaling $182.9 billion, were originated through April 2015. This is a 5.8% increase in accounts and an 8% rise in balances compared to the same time last year. These are the highest levels for this time period since Equifax began tracking this data.
Additionally, 2.12 million auto loans to consumers with an Equifax Risk Score below 620, generally considered subprime accounts, were originated through April 2015, a 9.6% increase over last year. Additionally, loans made to customers with subprime credit accounted for 23.5% of all auto loans through April, up slightly from 22.7% one year ago.
The average loan amount, according to Equifax, was $20,800 through April, a 3.65% increase over April 2014. Additionally, the average amount financed for a subprime loan increased 3.74% to $18,200.
Originally posted on F&I and Showroom
More Dealer Ops

Ladies and Gentlemen, This Is a Dealership: Why the Fundamentals Still Decide Who Wins
A teaching moment by a legendary football coach happens to apply perfectly in the auto retail space. Learn what it is and how to use it to your store’s advantage.
Read More →
Timing the Market Can Hurt Long-Term Program Performance
For dealer-owned reinsurance entities, avoiding volatility entirely can mean falling behind inflation and missing market rebounds that drive long term surplus growth. Missing just a handful of strong market days can materially impact cumulative returns—an important reminder for long horizon trust and investment strategies.
Read More →
Dealer Ads and the FTC
The agency has made it clear in recent enforcement actions and warnings, in auto retail and other industries, that advertised prices must include all nonoptional costs to the consumer.
Read More →
Used Autos Supply Dwindles
The March shopping surge, despite high prices, cut into inventory by the most since the thick of the pandemic, Cox Automotive analysts calculated.
Read More →
Managing Risk Effectively Through Changing Times
The variables influencing risk pricing have changed significantly over the past five years. Being proactive and responsive to emerging trends is not optional but essential.
Read More →
Survey Reveals What Won't Fix What's Breaking Car Sales
AutoPayPlus says extra-long auto loans are trapping consumers and threatening the dealer trade-in cycle, and that the industry is leveraging the wrong tools to combat high MSRPs.
Read More →
IA American Appoints Two Execs
Senior vice presidents of the company's agent and dealer channels chosen to support general agents and help auto dealers with sales and performance.
Read More →
Cox Automotive Acquires Inspection Firm
Full ownership of Alliance Inspection Management, or AiM, meant to unlock growth for Manheim inspection capabilities
Read More →
Assurant Expands Partnership With Holman
Extended collaboration delivers training, products and performance development to 30 newly acquired Holman dealerships
Read More →
Franchises, Throughput Down in First Half
A handful of states see franchise growth through June, while EV sales per store boost overall business in U.S.
Read More →