Auto Loan Debt Up, Delinquencies Steady
Q2 saw a jump in new borrowing, leases, but no past-due loan growth.

Overall, $188 billion in new auto loans and leases were added to credit reports in the second quarter, up 13% quarter-over-quarter.
Pexels/RDNE Stock Project
U.S. consumers’ automotive loan balances grew by $13 billion in the second quarter to about $1.7 trillion, though serious delinquency rates were about flat.
The Federal Reserve Bank of New York released the data in its Household Debt and Credit Report, basing the findings on its nationally representative Consumer Credit Panel.
The lack of growth in auto loans in arrears is good news, as student loan delinquencies are on the rise and can cause a ripple effect in other finance segments.
Auto loans in serious delinquency, or at least 90 days past due, remained at 2.9% year-over-year, the bank said. Student loans in that category, meanwhile, ballooned from just under 1% to about 13% as past-due payments reported to credit bureaus – suspended from the second quarter of 2020 to the fourth quarter of last year – have resumed.
Overall, $188 billion in new auto loans and leases were added to credit reports in the quarter, up 13% quarter-over-quarter, the bank said. The increase likely includes some of the spring-rush vehicle sales as consumers moved to get ahead of trade tariff-induced price inflation.
Originally posted on Auto Dealer Today
More Industry

Kia Closes Out Summer With a Bang
Its U.S. subsidiary broke multiple records in August, in part due to a surge of demand for hybrids models.
Read More →
Indiana Dealership Changes Hands
A 30-year-old Ford dealership in Indiana has a new owner and will soon be undergoing renovations to meet manufacturer requirements.
Read More →
Texas Dealership No Longer in the Family
The Ford store, a longtime cornerstone of the Houston market, is now part of one of the fastest-growing U.S. auto groups.
Read More →
Genesis Grows California Presence
The Cardinale Automotive Group opened its third Genesis rooftop in the Golden State, Genesis of San Bruno, a stand-alone dealership serving the San Francisco Bay Area.
Read More →
August Auto Sales a Mixed Bag
An early forecast shows strong business despite consumer hurdles, and hybrids are a big piece of their affordability coping strategy.
Read More →
EV Market Humming Along
July sales show steady growth as the segment stabilizes from last year’s artificial surge following pullback of federal support.
Read More →
Auto Loan Delinquency Rates Stabilize
Auto loans are a main driver of nonmortgage consumer debt, but delinquency rates stabilized in the second quarter across all credit risk tiers.
Read More →
EV Sales Recover in Q2
The EV sales roller coaster continues as numbers show improvement, but industry experts predict a year-over-year third-quarter decline and fourth-quarter jump.
Read More →
The Cheapest Hybrids to Fuel
The powertrain is increasing in popularity, in no small part due to its fuel economy. A new report lists the most efficient hybrids on the market.
Read More →
Hybrids and SUVs Gaining Ground
The most recent Kelley Blue Book Brand Watch found that only two nonluxury brands increased in shopper consideration, buoyed by their hybrid and SUV offerings.
Read More →