Auto loans surge but performance weakening

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By Jennifer Kang
13 Feb 2019

Outstanding auto loans totalled $584bn in 2018, the highest in 19 years, according to the Federal Reserve, and though the share originated to subprime borrowers has fallen, rising delinquency rates are a cause for concern.

According to the Fed’s quarterly Household Debt and Credit Report, auto loans increased by $9bn last year, up from 2017’s $569bn. The sector is enjoying the highest quality of loans since 2000, with the share of loans originated to borrowers with subprime credit scores having fallen to 22%. ...

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