COSTA MESA, Calif.—Subprime loan originations and balances continue to rise, a new report shows.
Subprime auto loan originations have a total balance of $7.07 billion, a 5.3% increase year-over-year, Experian said.
“The average subprime loan amount was $18,934. This is a 5.0% increase compared to January 2018,” the company said.
"While subprime origination activity and balances remain steady and in check, the data is showing an increase entering the year," said Jennifer Reid, Equifax’s vice president of automotive marketing and strategy. "Prices on new cars and trucks continue to rise, but I think we're seeing more evidence through subprime numbers that there is continued interest and activity in used vehicles for 2019. We anticipate this will persist in the coming months."