ATLANTA—The average auto loan amount continues to rise, as does the amount of money being asked for by subprime borrowers, reports Equifax, which further said the total loan number is down.
The company reported that the average origination loan amount for all auto loans issued in June 2019 was $24,134—a 6.6% increase over June 2018. The average subprime loan amount was $19,545, an 8.6% increase compared to June 2018.
The latest Equifax data also shows that 12.3 million auto loans, totaling $286.2 billion, have been originated year-to-date. This is a 0.6% decrease in accounts and a 2.6% increase in balances over this time last year.
Year-to-date, 2.68 million auto loans have been originated to consumers with a VantageScore 3.0 credit score below 620, generally considered subprime accounts. This is a 3.1% decrease from June 2018. These newly issued loans have a corresponding total balance of $50.4 billion, a 1.3% increase year-over-year, Equifax said.
Through June, 21.9% of auto loans were issued to consumers with a subprime credit score, accounting for 17.6% of origination balances. In 2018 year to date the account share was 22.4% and balance share was 17.8%.