SYDNEY, NSW, Australia–Seriously delinquent auto loan debt (90 days or greater) has increased at a faster pace than any other type of seriously delinquent household debt over the past five years, according to analysis of New York Federal Reserve data by Finder.com.
According to Finder.com, over the past five years the percentage of auto loans with 90-day-plus delinquent balances, “in other words seriously delinquent balances,” increased by 77.7% or a total of about $22.56 billion.
Over the same period, other types of debt delinquent by 90 days or more decreased in the same period:
- Mortgage debt decreased by about 74.2 %
- Home equity lines of credit decreased by about 58.4%
- Student loans decreased by about 41.9%
Meanwhile, auto loan balances continue to increase as Americans purchase more expensive vehicles. The average amount outstanding on an auto loan increased to $11,102 in 2018 from $9,687 in 2013, according to Finder.com’s analysis. The number all types of auto loans outstanding, not just those 90+ days delinquent.
“Perhaps accustomed to instant gratification, we’re taking on more risk to afford the luxury items we crave,” said Finder.com in releasing its data. “The result? About a 15% increase in the average auto loan balance outstanding per account from 2013 to 2018.”
The analysis also compared financing rates on a 48-month auto loan against the percentage of delinquent balances of 90 days or more, and said it found both numbers had increased overall since 2013.