This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Equifax Reports Auto Loan Originations Total More Than 50% Of All New Non-Mortgage Credit In 2013

ATLANTA, Aug. 29, 2013 (GLOBE NEWSWIRE) -- According to Equifax's (NYSE:EFX) latest National Consumer Credit Trends Report, the total balance of auto loan originations year-to-date in May 2013 is more than $196 billion and represents more than 50% of all new non-mortgage consumer credit originated in 2013.

In addition, new credit for auto originations January-May 2013 is an eight-year high and an increase of more than 15% from same time a year ago, while the total number of new loans in that same time is 9.9 million, also an eight-year high and a year-over-year increase of nearly 12%.

"Demand for new and used cars is accelerating with improvements in the economy and the auto credit industry is supporting that rise in demand," said Equifax Chief Economist Amy Crews Cutts. "The financial crisis, recession and subsequent tighter lending standards led many drivers to delay the purchase of a new or quality used car or light truck. Today, buoyed by a better economy, consumers are looking to finally replace these old cars. Lending standards are also relaxing a bit, allowing more otherwise well-qualified subprime-credit buyers to obtain a new set of wheels."

Dave Foerster, VP and General Manager of Equifax Automotive, added, "Lenders are searching for additional consumer insights, particularly as non-prime volume increases. Being able to monitor risk indicators and quickly verify consumer employment and income speeds up the loan decision process and enhances the consumer buying experience at the dealership. The result is a win for the consumer, the dealer and the lender."

Other highlights from the most recent data include:
  • Balances on outstanding auto loans in July 2013 total $826 billion, the highest level in five years and an increase of nearly 10.9% from same time a year ago;
  • Similarly, the total number of existing auto loans stands at 61 million, a 54-month high;
  • By source, loans funded by banks, savings and loans, or credit unions are at $397.1 billion, while the total number of loans is 29.3 million – a five-year high for both;
  • The total outstanding balance for loans funded by auto finance companies is $429.7 billion, a 50-month high, while the total number of existing loans is more than 31 million, its highest level in 46 months;
  • Serious delinquencies on auto loans funded by finance companies in July 2013 represent 1.84% of outstanding balances, a year-over-year increase of more than 14%; and
  • Serious delinquencies on auto loans funded by banks and other depositories are 0.34% of outstanding balances in July 2013, 5.8% lower than the same time a year ago.

About Equifax, Inc.

Equifax is a global leader in consumer, commercial and workforce information solutions that provide businesses of all sizes and consumers with insight and information they can trust. Equifax organizes and assimilates data on more than 500 million consumers and 81 million businesses worldwide, and uses advanced analytics and proprietary technology to create and deliver customized insights that enrich both the performance of businesses and the lives of consumers.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 17,440.59 -127.94 -0.73%
S&P 500 2,067.64 -12.01 -0.58%
NASDAQ 5,039.7760 -48.8540 -0.96%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs