Subprime Up 13% as Total Auto Originations Decline
The Federal Reserve Bank of New York’s Q1 U.S. household debt report finds auto loan and lease originations declined slightly year-over-year — except for sub-620 customers — while 90-day delinquencies grew by 9.2%.

The Fed’s latest Household Debt and Credit Report finds subprime auto loan and lease originations and 90-day delinquencies are on the rise.
Illustration by jamesbhl via Pixabay
NEW YORK — The Federal Reserve Bank of New York’s latest Household Debt and Credit Report finds new auto loan originations declined to $139 billion in the first quarter, a “modest” year-over-year decline. But originations for car buyers and lessees with sub-620 credit scores grew 13% to $27.9 billion, accounting for 21.8% of total outstanding auto balances.
Perhaps more concerning are 90-day delinquencies, which grew 9.2% year-over-year to account for 4.69% of all auto debt, the highest rate since 2011.
Originations for fair (620–659) credit borrowers accounted for $17 billion worth of originations for 13.3% of all balances. The biggest share belongs to prime (760-plus) customers, who borrowed $45.9 billion to claim 35.9% of the market.
Total U.S. household debt, which includes auto, home, and student loans, home equity lines of credit and credit-card balances, grew 0.9% to $13.67 trillion, meaning auto loans accounted for 9.4% of all debt in the first quarter. Mortgage balances grew by $120 billion and student loans grew by $29 billion year-over-year, but credit-card balances and home equity lines of credit fell by $22 billion and $6 billion, respectively.
Originally posted on F&I and Showroom
More Industry

Autos More Appealing
Consumers gave new cars better scores again this year for design, performance and more as mass-market brands kept gaining on premium lineups, JD Power found in an annual poll.
Read More →
Used EVs Defy Overall Market
While the used-car market saw three months of price declines or stagnation, the used EV segment did the opposite – rising for three straight months.
Read More →
Gone to the Dogs
A Stellantis brand decided to have some fun with one of its SUVs’ design to address growing emphasis on family pets.
Read More →
OEM Poll Sees Industry Evolution
Kerrigan Advisors’ survey of automakers finds that tariffs, technology, network tightening and other factors are poised to reshape auto retail.
Read More →
Luxe N.C. Dealerships Change Hands
A collection of Italian and English brand franchises were handed off to the owner’s friend in the business and include the Carolinas’ only Ferrari retail stores.
Read More →
Exposure Drives Interest in Chinese Cars
At a recent demonstration, consumers had the chance to ride in a Chinese-branded vehicle, a firsthand experience that improved their perceptions and purchase intent.
Read More →
Automotive Consumers Sink Further in Debt
Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.
Read More →
Agent Advocate
Rob Mancuso, who comes from a long line of auto dealers, values general agents’ place in the industry and makes a case for them taking an even bigger seat at the table.
Read More →
Driving Under Distraction
Though consumers gave higher marks to new vehicles in JD Power’s most recent initial-quality poll, high-tech interference worsened, pointing to craving for simplicity.
Read More →
Affordable New Cars a Thing of the Past
More than one out of five new vehicles sell for more than $60,000, according to Edmunds. That's up 7% compared to prepandemic 2019.
Read More →