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Breaking Down Auto Loan Performance

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Abstract

Debt balances continued to rise at a moderate pace in the fourth quarter of 2024, and delinquencies, particularly for auto loans and credit cards, remained elevated, according to the latest Quarterly Report on Household Debt and Credit from the New York Fed’s Center for Microeconomic Data. Auto loan balances have grown steadily since 2011, expanding by $48 billion in 2024. This increase reflects a steady inflow of newly originated auto loan balances, which in 2024 were boosted primarily by originations to very prime borrowers (those with credit scores over 760) while originations to borrowers with midprime and subprime scores held roughly steady. In this post, we take a closer look at auto loan performance and find that delinquencies have been rising across credit score bands and area income levels. We also break down auto loan performance by lender type and find that delinquencies are primarily concentrated in loans from non-captive auto finance companies.

Suggested Citation

  • Andrew F. Haughwout & Donghoon Lee & Daniel Mangrum & Joelle Scally & Wilbert Van der Klaauw, 2025. "Breaking Down Auto Loan Performance," Liberty Street Economics 20250213, Federal Reserve Bank of New York.
    • Handle: RePEc:fip:fednls:99552
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    More about this item

    Keywords

    household finance; Consumer Credit Panel (CCP); auto loans;
    All these keywords.

    JEL classification:

    • G5 - Financial Economics - - Household Finance

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