The total balance of open automotive loans in the US climbed 11.1% in the first quarter of 2016, surpassing the trillion dollar mark for the first time on record, according to Experian Automotive. The most recent State of the Automotive Finance Market report finds that loan balances reached $1.005 trillion in Q1 2016, up from $905 billion in Q1 2015. Open leases grew by 27.55% to an all-time high of $76.9 billion, up from $73.1 billion the previous year. The market first reached the trillion dollar mark—with the combined total balance of open loans and leases—in Q3 2015.
Findings from the report also show that while there were increases in both 30- and 60-day delinquency rates, the overall percentage of total delinquent loans remains relatively low when compared to pre-recession levels.
In Q1 2016, the percentage of loans and leases considered 30-days delinquent was 2.1%, up from 2.02% in Q1 2015. Additionally, the percentage of loans and leases considered 60-days delinquent grew from 0.57% to 0.61% over the same time period.
Some additional insights from the Q1 2016 report:
The volume of vehicle loans and leases held by nonprime and subprime consumers increased by 9.5% and 10.9%, respectively.
Prime consumer loans and leases increased by 8.9%.
Finance companies and credit unions saw the largest growth in loan and lease market share, growing 25.6% and 15.9%, respectively.
Banks continued to hold the top position in automotive loan and lease volume, growing 7.9% over the previous year to reach $349 billion in market share.