Auto loan balances top $780 billion mark: Experian

by. Michelle A. Samaad

Buoyed by a drop in delinquent loans, auto loan balances reached an all-time high in the third quarter at $782.9 billion, according to Experian Automotive.

That figure was up $103 billion from the third quarter in 2012, data from Experian’s latest State of the Automotive Finance Market report showed.

Indeed, automotive loan balances are growing across the country. Those showing the fastest percentage growth year over year included California (up 29.3%), Texas (up 26.3%) and Nevada (up 26.0%).

The states with the slowest growth rates year over year included Hawaii (up 12.4%), Wyoming (up 12.3%) and Michigan (up 6.8%).

“The availability of credit, combined with consumers’ continued strong performance repaying their loans, has a positive spiral effect,” said Melinda Zabritski, senior director of automotive lending for Experian Automotive. “It allows lenders to slowly but surely take on additional risk while providing more access to loans and paving the way for higher auto sales.”

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