U.S. auto loans and lease originations – newly written loans and leases for new and used light vehicles – are down 12.7% in the second quarter from a year ago, to $135.9 billion, with the biggest drop among subprime borrowers, according to the New York Federal Reserve.
Originations among borrowers with credit scores below 620, a common metric for subprime credit, are down 23.2% for the quarter, according to the New York Fed’s Quarterly Report on Household Debt and Credit published Aug. 6.
Also, delinquencies are up slightly for the second quarter. Auto loans that are past due 90-plus days account for 5.03% of the total outstanding balance, up from 4.64% a year ago, the report says. That’s the second consecutive quarter 90-day delinquencies topped 5%, and the first time that’s happened since first-quarter 2011.
For borrowers in the Fed’s highest credit tier, with credit scores of 760 and higher, originations are down just 7.9% for the quarter.
