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Auto Finance Growth Slows

Auto Finance Growth Slows Featured

Auto finance saw the lowest annual growth rate in the fourth quarter since the second quarter of 2012, according to TransUnion.Auto finance balances grew 5.5 percent between the fourth quarter of 2016 and the fourth quarter of 2017. They grew 5.3 percent in the second quarter of 2012 over the second quarter of 2011. Despite a slowdown in balance growth, auto loans grew to 79.4 million in the fourth quarter, compared to 75.8 million one-year prior. Originations declined on a yearly basis for the fifth consecutive quarter, falling 4.8 percent in the third quarter of 2017. The decline in originations was driven by an 8.2 percent yearly drop for the subprime, near-prime and prime credit risk categories, though that was partially dampened by only a 0.2 percent annual decline in the prime plus and super prime risk categories. Serious auto finance delinquency rates per borrower also remained stable, improving to 1.43 percent at the end of 2017.
Last modified on Thursday, 22 February 2018 04:04