Smart Borrower Blog

Archive for the ‘Auto Loans’ Category

Prime Credit Consumers Turn to Used Vehicles

Jun 27th, 2019 @ 9:16 AM by Amber Nelson

As prices for new vehicles continue to hit record highs, U.S. consumers with great credit are choosing to buy used cars more often. According to data from credit agency Experian, during the first quarter of 2019, 61.8% of borrowers with prime credit and 44.7% of those with super prime credit scores took out loans for […]

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Auto Lenders Take on More Subprime Borrowers

May 23rd, 2019 @ 12:13 PM by Amber Nelson

While the majority of car loan borrowers continue to have high credit scores, lenders have increased their loans to subprime borrowers over the past year, according to the Federal Reserve Bank of New York. The New York Fed’s Quarterly Report on Household Debt and Credit for the 2019 first quarter found that those with credit […]

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Car Loan, Credit Card Delinquencies Reach New Peaks

Apr 24th, 2019 @ 9:22 PM by Amber Nelson

U.S. consumers are falling behind on their credit card bills and car loans at higher rates than have been seen in almost a decade, according to data from the American Bankers Association, but that may be more of a return to historical norms rather than a sign of economic doom. After falling in 2017, in […]

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Average Car Loan Interest Rates Hit 10-year High

Mar 20th, 2019 @ 10:09 AM by Amber Nelson

Americans love their big trucks and SUVs and that affection is driving average auto loan interest rates to highs not seen in a decade, according to Edmunds. As vehicle prices continue to climb, lenders have been increasing the number of low or zero interest rate programs, which has in turn pushed overall new-vehicle auto loan […]

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Household Debt Tops Pre-Recession High

Feb 20th, 2019 @ 9:58 PM by Amber Nelson

Americans owed $13.54 trillion in household debt as of the 2018 fourth quarter, according to data from the Federal Reserve Bank of New York, a 0.2% increase from the third quarter and the 18th straight quarterly gain. Total household debt has surpassed even the pre-recession peak of $12.68 trillion and is 21% higher than the […]

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Serious Auto Loan Delinquencies Reach All-Time High

Feb 14th, 2019 @ 1:29 PM by Amber Nelson

More Americans are seriously delinquent on their car payments than ever before, according to new data from the Federal Reserve Bank of New York, a troubling sign amid a growing economy. Almost 7 million U.S. consumers are now behind on their auto loans by 90 days or more, the highest figure in the 19-year history […]

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Credit Card and Mortgage Delinquencies Rise in Latest Quarter

Jan 16th, 2019 @ 12:42 PM by Amber Nelson

While still well below historical averages, several categories of consumer credit delinquencies rose in the 2018 third quarter, including credit cards and home equity loans. According to data from the American Bankers Association, delinquencies increased in six of the 11 categories tracked in the ABA Consumer Credit Delinquency Bulletin. The composite ratio – a measure […]

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Monthly Car Loan Payments Reach Record High

Jan 2nd, 2019 @ 10:55 PM by Amber Nelson

Consumers are paying more and more for their cars each month, according to data from Experian Automotive, and auto lenders are starting to feel the risks of those higher payments. The average monthly loan payment for a new-vehicle rose to an all-time high of $530 in the 2018 third quarter, a 6% increase from the […]

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Subprime Auto Lending Grew in 3rd Quarter

Nov 21st, 2018 @ 2:07 PM by Amber Nelson

Originations of auto loans among borrowers with poor credit rose in the 2018 third quarter for the first time in over two years, according to the Federal Reserve Bank of New York. The New York Fed’s “Household Debt and Credit Report found that total new subprime – those with credit scores below 620 – auto […]

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Student Loan Defaults Could Reach 40% by 2023

Nov 7th, 2018 @ 11:22 AM by Amber Nelson

U.S. student loan borrowers are defaulting at such a steep rate that on the current trajectory as many as 40% of all borrowers could be in default within the next five years, according to a report from the Urban Institute. Student loans now make up the second-largest consumer debt category. Today there are more than […]

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