ATLANTA, Dec. 19, 2013 (GLOBE NEWSWIRE) -- The latest Equifax (NYSE:EFX) National Consumer Credit Trends Report, indicates that as portfolio quality has improved, originations in multiple consumer loan types have opened to higher risk consumers to varying degrees. This is reflected within the auto lending sector as origination continues to thrive while payment performance improvements for auto loans remain strong.
- Growth was reported in both financial institution-originated auto loans (more than 950,000) and captive and other finance company-originated loans (more than 975,000). Both sectors realized the highest loan totals for the month of September of the last eight years;
- Subprime auto lending (defined as having Equifax Risk Scores below 640) now accounts for approximately 30 percent of all auto loans originated today;
- Total Auto loan amount originated also hit an eight year high at nearly $39 billion; and
- While total auto loan volumes and amounts exceeded 2006 totals, the average loan amount was slightly less -- $20,179 (2013) vs. $20,420 (2006). This fact, coupled with the lower interest rates being charged today has resulted in an approximately 8 percent reduction in average monthly loan payments for new borrowers.