Auto Loans and Leases Up 1% in Q3
The Federal Reserve reports U.S. car buyers borrowed $159 billion in the third quarter, a modest gain powered by a 6% increase in originations to prime credit customers.

The Federal Reserve Bank of New York reports auto loan originations grew in Q3 despite a 7.4% decrease in loans to subprime borrowers.
Photo by Thomas B. via Pixabay
NEW YORK — Auto loan originations grew by about 1% year-over-year in the third quarter, according to the Federal Reserve Bank of New York’s Center for Microeconomic Data’s latest Quarterly Report on Household Debt and Credit.
Auto loan originations totaled $159 billion, a small increase from the prior quarter. The median credit score for new auto loan originations increased to 711, an 8-point jump from Q2.
Originations for car buyers with sub-620 credit scores decreased by 7.4%, a loss that was at least partially offset by a 6% gain in the 720-plus range.

Mortgage originations, which include mortgage refinances, stood at $528 billion this quarter compared to $445 billion in Q3 2018, an 18.7% increase. The median credit score of mortgage borrowers rose to 765, a 6-point quarter-to-quarter increase.
“New credit extensions were strong in the third quarter of 2019, with auto loan originations reaching near-record highs and mortgage originations increasing significantly year-over-year,” said Donghoon Lee, research officer at the New York Fed. “The data suggest that households are taking advantage of a low interest rate environment to secure credit.”
Originally posted on F&I and Showroom
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