According to Experian Automotive, the total balance of all outstanding auto loans reached $1.027 trillion between April 1 and June 30, the second consecutive quarter that it surpassed the $1-trillion mark. Unfortunately, 30 and 60-day delinquency rates also rose in the second quarter.The average new car loan was $29,880, up 4.8% from the second quarter of 2015, and about $4,000 less than the average new vehicle selling price. The average monthly payment on those loans was $499, up from $483 a year earlier. A growing portion of those loans are for a longer term, sometimes as long seven years. According to Experian, the average loan term for a new vehicle went from 67 months in the second quarter of 2015 to 68 months in the second quarter of 2016.Fitch Ratings recently issued a report that found that among subprime and deep subprime borrowers (those with a FICO score of less than 600) the percentage of loans that were 60 days or more delinquent had reached 4.59% in July, a 17% increase from a year earlier. Delinquencies among prime auto loan borrowers also rose to 0.4%, up 21% from the same period a year ago.
Leasing Volume Tops 31% In The 2nd Quarter.Experian Automotive’s latest State of the Automotive Finance Market report stated that new vehicle leases jumped from 26.92% of the market in the second quarter of 2015 to a record-high of 31.44% in the second quarter of 2016. Even used vehicle leasing, which accounts for a small slice of the lease market, experienced growth, moving from 3.26% last year to 3.71% this year. The credit scores for those individuals who chose to lease also remained strong, as 48.10% fell into the prime tier, with credit scores between 661 and 780.