Here is the most recent auto loan and lease origination data and trends from Equifax.
Key Highlights: The percent of subprime to the total originations is at the lowest point since 2011 (currently at 20.7%).
Auto Loan Originations Observations reported through April 2019
- 7.96 million auto loans, totaling $183.9 billion were originated year-to-date. This is a 0.3% decrease in accounts and a 2.3% increase in balances over this time last year.
- Auto loans represent 86.6% of all auto account originations and 89.8% of all auto origination balances through April 2019.
- 1.81 million auto loans have been originated YTD to consumers with a VantageScore® 3.0 credit score below 620, these are generally considered subprime accounts. This is a 1.8% decrease from April 2018. These newly issued loans have a corresponding total balance of $33.6 billion, a 1.8% increase year-over-year.
- Through the end of April 2019, 22.7% of auto loans were issued to consumers with a subprime credit score, accounting for 18.3% of origination balances. In the same time a year ago the account share was 23.1% and balance share was 18.3%.
- The average origination loan amount for all auto loans issued in April 2019 was $23,659. This is a 4.5% increase over April 2018. The average subprime loan amount was $19,304, which is a 6.1% increase compared to April 2018.
Auto Lease Originations Observations reported through April 2019
- 1.24 million auto leases, totaling $20.9 billion, have been originated year-to-date. This is a 3.4% decrease in accounts and a 0.2% increase in balances from this time last year. Auto leases accounted for 13.5% of all auto accounts originated through April and 10.2% of balances.
- 114,380 auto leases have been originated YTD to consumers with a VantageScore® 3.0 credit score below 620. These are generally considered subprime accounts. This is a 5.0% decrease from April 2018. These newly issued leases have a corresponding total balance of $2.03 billion, a 1.5% decrease year-over-year.
- Through April, 9.2% of auto lease accounts and 9.7% of total balances were issued to consumers with a subprime credit score.
- The average origination balance for all auto leases is issued in April 2019 was $16,834. This is a 3.3% increase from April 2018. The average subprime lease amount was $17,979, a 4.2% increase over a year ago. Note that lease origination values reflect the contract amounts only and exclude expected vehicle residual values.
"While overall auto sales have fallen slightly compared to the previous year, we're seeing active and interesting trends in auto loan originations through April," said Jennifer Reid, Equifax’s vice president of Automotive Marketing and Strategy. "In particular, while subprime activity continues to grab headlines it is interesting that the percent of subprime to the total originations are at the lowest level dating back to the end of the recession. Furthermore, we will keep a watchful eye on lender activity, as it appears lenders are tightening up in the under-620 credit score bucket for both lease and retail contracts."