Subprime Up 13% as Total Auto Originations Decline
The Federal Reserve Bank of New York’s Q1 U.S. household debt report finds auto loan and lease originations declined slightly year-over-year — except for sub-620 customers — while 90-day delinquencies grew by 9.2%.

The Fed’s latest Household Debt and Credit Report finds subprime auto loan and lease originations and 90-day delinquencies are on the rise.
Illustration by jamesbhl via Pixabay
NEW YORK — The Federal Reserve Bank of New York’s latest Household Debt and Credit Report finds new auto loan originations declined to $139 billion in the first quarter, a “modest” year-over-year decline. But originations for car buyers and lessees with sub-620 credit scores grew 13% to $27.9 billion, accounting for 21.8% of total outstanding auto balances.
Perhaps more concerning are 90-day delinquencies, which grew 9.2% year-over-year to account for 4.69% of all auto debt, the highest rate since 2011.
Originations for fair (620–659) credit borrowers accounted for $17 billion worth of originations for 13.3% of all balances. The biggest share belongs to prime (760-plus) customers, who borrowed $45.9 billion to claim 35.9% of the market.
Total U.S. household debt, which includes auto, home, and student loans, home equity lines of credit and credit-card balances, grew 0.9% to $13.67 trillion, meaning auto loans accounted for 9.4% of all debt in the first quarter. Mortgage balances grew by $120 billion and student loans grew by $29 billion year-over-year, but credit-card balances and home equity lines of credit fell by $22 billion and $6 billion, respectively.
Originally posted on F&I and Showroom
More Industry

World EV Adoption Set to Grow
A new report says the segment, despite recent setbacks in some regions, is poised for acceleration as many countries look to reduce pollution.
Read More →
Black Book: Weekly Market Update
Wholesale automotive auction business stayed steady last week as bidders encountered lower prices, analysts observed.
Read More →
Pricing Transparency Drives Purchase Consideration
An annual study by JD Power found that clear pricing matters to consumers on automaker websites, so much so that it increases their purchase consideration.
Read More →
Black Book: Weekly Market Update
Used-vehicle market depreciation was the prevailing story in the wholesale market last week.
Read More →
Smaller Is Looking Better
A growing number of Americans in the market for a new vehicle are opting for more affordable options, not waiting for market stability to bite the bullet.
Read More →
U.S. EV Market Slowly Stabilizes
U.S. electric-vehicle interest is slowly stabilizing since a major dip in sales after last year's end of the federal EV tax credit, and hybrids remain the leading electrified power train.
Read More →
Global EV Market Entering New Phase
Automakers are making investments to lower battery costs and optimize production to meet changing consumer needs.
Read More →
Black Book Weekly Market Update
The holiday weekend, not surprisingly, put a drag on wholesale automotive activity last week, analysts observed.
Read More →
Auto Affordability in Context
Cox Automotive points out the complex circumstances that have led to eye-popping vehicle prices.
Read More →
Black Book: Weekly Market Update
Automotive auction inventory increased last week, giving choosy bidders even more leeway.
Read More →