New reports from Equifax on auto financing pointed to $41.3 billion in auto loans originated year-to-date. That denotes a 0.8 percent increase in accounts and a 2.8 percent increase in balances over this time last year.
According to an article in Subprime Auto Finance News, “Analysts tabulated that 379,100 auto loans have been originated year-to-date to consumers with a VantageScore 3.0 credit score below 620, which are generally considered subprime accounts. Equifax determined this figure represented a 1.9 percent increase from January 2018.”
Equifax predicts these newly issued subprime contracts have a corresponding total balance of $7.07 billion, a 5.3 percent. increase year-over-year.
The average origination amount for all auto loans issued in January 2019 was $23,464, representing a 3.3 increase increase over January 2018. The average subprime contract amount was $18,934, representing a 5.0 percent increase compared to January of last year.
Read the full article in Subprime Auto Finance News here.
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