Auto Loans Reach 57-Month High
According to recent reports from Equifax, the total number of outstanding auto loans in America was more than 61 million as of August 2013. This represents a 57-month high for the country.
The total value of these loans is $834.4 billion, up from $760.8 billion in 2012. This is a 9.7% increase, which is much larger than the rise in either bank or retail credit cards.
Despite the high-volume car loans out at the moment, consumers seem to be doing a good job of keeping up with their payments. Delinquency rates are improving across the board, dropping 10% for auto loans. This number reflects the amount of loans that are more than 60 days past due.
“Our data consistently indicates that the American consumer is being very disciplined in their use of credit,” said Equifax Chief Economist Amy Crews Cutts. “It’s like they’ve gone on a debt-diet and they are really sticking to it, with modest increases in line with capacity to repay.”
Delinquency rates for credit card loans are also at very low levels. Americans seem to be more responsible with their finances. They seem to be monitoring their money better and keeping up with their payment programs. This could be a good sign for future economic growth.