The growth of auto loan delinquencies slowed year-over-year in the third quarter as overall consumer credit conditions showed signs of stabilizing from the pandemic.

The improved outlook comes as vehicle affordability metrics ease, said consumer credit reporting agency TransUnion. The average monthly new-vehicle payment was essentially flat in the quarter at $745 after a two-year stretch that saw an almost 5% gain. The average used-vehicle payment fell about 2% to $526.

TransUnion said the recent interest rate cuts haven’t yet affected auto loan originations, which it said are still far under historical levels.

“Despite originations remaining low relative to historical norms, there’s much to be optimistic about when looking to key auto metrics this quarter,” said TransUnion Senior Vice President, Automotive and Mortgage Business Leader Satyan Merchant. 

“Delinquencies, while still increasing, are growing more slowly. However, this does continue to impact loan availability. That said, interest rate declines along with more normal inventory levels and reduced prices could provide relief to consumers in this market.”