Equifax: Auto Loans Make Up Half of New Non-Mortgage Credit
Auto loan originations totaled more than $196 billion in May 2013, representing more than half of all new non-mortgage consumer credit originated in 2013, according to a new report from Equifax.
ATLANTA — The total balance of auto loan originations year to date in May 2013 was more than $196 billion and represents more than 50 percent of all new non-mortgage consumer credit originated in 2013, according to Equifax’s latest National Consumer Credit Trends Report.
In addition, new credit for auto originations from January to May 2013 reached an eight-year high, increasing more than 15 percent from same time a year ago. The total number of new loans in that same time was 9.9 million, also an eight-year high and a year-over-year increase of nearly 12 percent.
"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. "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."
Additionally, balances on outstanding auto loans in July 2013 total $826 billion, the highest level in five years and an increase of nearly 10.9 percent 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, totaled $397.1 billion, while the total number of loans originated reached 29.3 million — a five-year high for both. The total outstanding balance for loans funded by auto finance companies was $429.7 billion — a 50-month high — while the total number of existing loans was more than 31 million, its highest level in 46 months.
Serious delinquencies on auto loans funded by finance companies in July 2013 represented 1.84 percent of outstanding balances, a year-over-year increase of more than 14 percent. Serious delinquencies on auto loans funded by banks and other depositories were 0.34 percent of outstanding balances in July 2013, 5.8 percent lower than the same time a year ago.
More F&I

AI: Facilitator, Not Fixer, in F&I
The dealerships that thrive in the years ahead will be those that embrace technology while continuing to invest in the people who make customer interactions count.
Read More →
Modern Technology Objection Handling
In this video, Trent White shares how to confidently handle technology-based objections by helping customers understand the value of protection, even with modern vehicle technology.
Read More →
Consistency at Scale: Driving F&I Performance
With 75 rooftops across the Sunshine State, Morgan Auto Group has proven to Floridians that it knows a thing or two about driving performance in a competitive market. But it didn’t start at the top.
Read More →
Gitty Up on GAP
The foundational finance-and-insurance product hasn’t kept up with the latest conditions for auto dealers. Is the time ripe?
Read More →
How AI-Powered Coaching Is Transforming F&I Performance
See how AI-powered coaching can turn F&I customer conversations into actionable insights that support compliance, performance and profitability
Read More →
Sell Value, Build Trust
In this video, Trent White explains why selling on value, not fear, builds lasting customer trust, reduces cancellations, and drives long-term success.
Read More →
F&I Sales Give Dealers First-Half Lift
Product business shored up total profits to avoid an overall revenue tanking as product penetrations held steady, StoneEagle reported.
Read More →
Targeted Training Drives Results
Today’s technology, instead of threatening F&I managers, can actually make them better, according to an industry veteran who’s watched market setbacks roil the unprepared.
Read More →
Double the Change, Double the Chance
When an F&I manager gets a customer refusal, it’s a wise move to tweak more than one thing in the product offering.
Read More →
Just Do It
F&I managers need training, but instead of resisting application or expecting perfection, they should improve by simply acting on what they learn.
Read More →