It looks like Americans are feeling more confident about borrowing money again, at least when it comes to their cars. Credit reporting giant Equifax has released its latest National Consumer Credit Trends Report, and the data suggests that auto lending is booming in 2014.
The total amount of outstanding auto loans in the US amounted to $902.2 billion in the company’s analysis. Not only was that a new record, it was also a 10-percent increase from a year ago. “Auto lending continues to thrive, accounting for more than fifty percent of all new non-mortgage lending through April of 2014,” said Dennis Carlson, Deputy Chief Economist at Equifax, in the study.
The results mixed some bright spots with some seemingly worrying trends following the recent subprime credit crisis, though. According to the report, year-to-date new auto loans as of April 2014 reached $163.5 billion, the highest amount since 2005, and the number of them in that period was also at record levels. According to Carlson, the amount of delinquencies was at near-record lows of less than 1 percent of that $902 billion.
“Subprime lending has grown across all sectors in 2014. This is good news as a fully functioning second-chance market is essential for a healthy economy,” said Carlson in the study. Auto loans to these buyers reached $46.2 billion year-to-date, an eight-year high, which made them about 28 percent of the total loan balance from this year.
The rest of the report indicated a strong credit market elsewhere too. Banks issued more credit cards, and overdue accounts were at a five-year low. The total amount in mortgages was actually down from last year, but delinquencies were lower as well. Want to know more? Scroll down.