In the first half of 2018, U.S. car buyers borrowed some $279 billion to purchase a new or used vehicle. That total is up by 3.5% year over year. A total of 12.4 million auto loans were made in the same period, a year-over-year increase of 1.6%.
The average loan amount for all auto loans issued in June of this year was $22,899, an increase of 2.2% compared to the average loan in June 2017. The data were reported Tuesday by credit score provider Equifax.
Gunnar Blix, deputy chief economist for Equifax, commented:
Despite a pace of sales that’s slightly off the record-setting mark of 2016, car shoppers are financing more through the mid-way point of this year, a clear reflection of the continued increase in the price of cars and trucks. We’re also continuing to see strong sales activity for used vehicles, with the first half of 2018 on pace with what we saw in 2017, as shoppers realize they can find bargains on slightly used, off-lease vehicles that are readily available.
Auto leases for the first half of this year have declined by 1.2% to 1.99 million, totaling $32.4 billion, a drop of 2.9% in lease balances. The average origination balance for a lease issued in June of this year was $16,617, down 0.8% year over year. Lease values reflect only the contract amount and do not exclude the expected residual value of the vehicle at the end of the lease term.
Equifax also reported that the number of subprime loans (to borrowers with credit scores below 620) to buyers fell by 1.6% to 2.78 million year over year and dipped by 0.9% in loan balances to $49.9 billion. The average subprime loan amount was $18,205, up 1.9% year over year.
The number of subprime lease originations fell by 5.4% in the first half of the year to 180,500 representing a total balance of $3.12 billion, down 5.6% year over year. The average subprime lease amount was $17,629, a drop of less than 0.1% year over year.
24/7 Wall St.Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
