The percentage of auto loans to buyers with the poorest credit ratings is growing faster than the rest of the auto finance market, according to a new report.
Experian Automotive’s analysis of open auto loans in the fourth quarter raises more questions about the health of the American consumer.
In addition to the growth in subprime and deep subprime auto loans, the report also shows a slight decrease in auto loans one month past due but an increase in auto loans at least 60 days’ delinquent. In the fourth quarter, 0.77 percent of all auto loans were at least two months past due.
“The numbers are obviously worth keeping an eye on, but lenders are managing the risk,” said Melinda Zabritski, Experian’s senior director of automotive finance.
The average amount owed on the loans 60 days past due was $737 to $3,042, depending on the credit score.