ATLANTA — The auto finance industry continued lead the credit industry’s recovery in the opening months of 2014, according to Equifax’s latest National Consumer Credit Trends Report. It showed that the segment’s total outstanding balance reached a record high $884 billion in April — a 10.8% increase from a year ago.
New credit on a year-to-date basis in February, according to the report, increased more than 13% from a year ago to $69.9 billion, an eight-year high. Additionally, serious delinquencies represented less than 1% of total outstanding balances — the lowest level in more than five years.
“Auto lending continues to lead the recovery,” said Amy Crews Cutts, Equifax’s chief economist. “"By any metric you consider, whether new originations, total balances, or low delinquency levels, the auto sector is running on all cylinders.
“The boom in auto purchases ended in 2004, and people are now thinking about replacing their jalopies as the average age of a car on the road today is over 11.4 years old and the financing terms are favorable for those with decent credit histories," she added.
Other highlights from the most recent Equifax data include:
First Mortgage:
Though down from the previous month, the total balance of first mortgages outstanding in April showed an increase of 2.7% from same time a year ago.
Delinquent first mortgages, loans more than 30 days past due, represented less than 4.94% of outstanding balances, a decrease of more than 24% from same time a year ago.
Similarly, the total balance of first mortgages 90 days past due or in foreclosure was less than $240 billion, a six-year low and a decrease of more than 30% from same time a year ago.
Delinquencies on first mortgages originated in 2010 and later represented 10% of total delinquencies.
