Auto Loan Debt Up, Delinquencies Steady
Q2 saw a jump in new borrowing, leases, but no past-due loan growth.

Overall, $188 billion in new auto loans and leases were added to credit reports in the second quarter, up 13% quarter-over-quarter.
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U.S. consumers’ automotive loan balances grew by $13 billion in the second quarter to about $1.7 trillion, though serious delinquency rates were about flat.
The Federal Reserve Bank of New York released the data in its Household Debt and Credit Report, basing the findings on its nationally representative Consumer Credit Panel.
The lack of growth in auto loans in arrears is good news, as student loan delinquencies are on the rise and can cause a ripple effect in other finance segments.
Auto loans in serious delinquency, or at least 90 days past due, remained at 2.9% year-over-year, the bank said. Student loans in that category, meanwhile, ballooned from just under 1% to about 13% as past-due payments reported to credit bureaus – suspended from the second quarter of 2020 to the fourth quarter of last year – have resumed.
Overall, $188 billion in new auto loans and leases were added to credit reports in the quarter, up 13% quarter-over-quarter, the bank said. The increase likely includes some of the spring-rush vehicle sales as consumers moved to get ahead of trade tariff-induced price inflation.
Originally posted on Auto Dealer Today
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