Equifax Reports Total Auto Loans, Balances at Highest Levels in More Than 40 Months

Fri Feb 8, 2013 2:03pm EST

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ATLANTA,  Feb. 8, 2013  /PRNewswire/ -- According to Equifax's latest  National
Consumer Credit Trends Report, at the end of  January 2013, the balances on
outstanding auto loans total  $782 billion, the highest level since  January
2009  for a 48 month high, while the total number of existing loans stands at 59
million, the highest level since  July 2009  for a 42 month high.  Equifax's
auto reporting includes both loan and lease type auto financing.   

(Logo:   http://photos.prnewswire.com/prnh/20060224/CLF037LOGO)  

By source, loans funded through financial institutions such as banks, savings
and loans or credit unions, are at more than  $372 billion, realizing a 60-month
high and back to pre-recession levels. Similarly, at more than  $409 billion,
balances on loans funded by auto finance companies are at its highest level in
46 months.  

Delinquency rates within the auto portfolio are also improving, and by year-end
2012 decreased by nearly 11% from same time a year ago, while auto loan and
lease losses in that same period dropped nearly 10%.

"Sales of new cars and light trucks are rising steadily, though they are still
well below pre-recession levels of roughly 17 million units," said Equifax Chief
Economist  Amy Crews Cutts. "Yet auto lending, including leases, is now back to
pre-recession levels, driven in part by the very attractive interest rates being
offered on these loans and a gradual increase in willingness to lend to
less-than-perfect credit borrowers."  

Other highlights from the most recent data include:

* The most recent data shows that auto loans originated between January-November
2012  totaled  $387.7 billion, a six-year high and representing nearly 46% of
total consumer credit originated ($825 billion) for that same time.  
* Total number of new auto loans originated between January-November 2012  was
19.9 million, an increase of more than 11% from January-November 2011  and
matching a six-year high.  
* New auto loans funded in  November 2012  by banks, savings and loans or credit
unions increased nearly 13% over  November 2011  totals (749,800 to 857,300).  
* For January-November 2012, auto lending to subprime borrowers (origination
risk scores less than 640) has increased more than 18% year-over-year, from 5.1
million to 6.1 million.

About Equifax, Inc.

Equifax is a global leader in consumer and commercial information solutions,
providing businesses of all sizes and consumers with information they can trust.
We organize and assimilate data on more than 500 million consumers and 81
million businesses worldwide, and use advanced analytics and proprietary
technology to create and deliver customized insights that enrich both the
performance of businesses and the lives of consumers.

Headquartered in  Atlanta, Equifax operates or has investments in 18 countries
and is a member of Standard & Poor's (S&P) 500 Index. Its common stock is traded
on the New York Stock Exchange (NYSE) under the symbol  EFX. For more
information, please visit  www.equifax.com.

 

SOURCE  Equifax


Demitra Wilson, +1-404-885-8907, demitra.wilson@equifax.com, or Tim Klein,
+1-404-885-8555, tim.klein@equifax.com

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