auto dealer in black and red logo
MenuMENU
SearchSEARCH

Severe Delinquencies Fall to 10-Year Low, Equifax Reports

Despite new auto loan originations reaching a record high, the auto finance industry saw severe delinquency rates fall to their lowest level in nearly a decade.

by Staff
June 4, 2015
2 min to read


ATLANTA — According Equifax’s latest National Consumer Credit Trends Report, new auto loan originations have reached record highs, while severe delinquency rates fell to their lowest level in nearly a decade. At the same time, auto leasing has surged as consumer demand for new vehicles remains strong.

The severe delinquency rate — the percentage of outstanding loans 60 or more days past due — for auto loans and leases in April 2015 was 0.81%, the lowest level since September 2005. This uptick in performance coincides with continued growth in the auto loan market, with the number of new auto loan originations through February reaching 4.1 million — a 5.2% increase over the same period last year. It’s also the highest origination total since Equifax began tracking this data in 2005.

“There’s been much concern about the growth of auto lending, particularly in the subprime space, over the past year, yet historically low delinquency rates reveal that the sector continues to perform well,” said Dennis Carlson, Deputy Chief Economist at Equifax. “More consumers are staying current on their payments, which is due to both improved economic conditions and the fact that lenders and dealers are qualifying the right borrowers across the entire credit spectrum.”

Other highlights from Equifax’s report include:

  • More than 980,000 auto loans have been originated year to date to consumers with an Equifax Risk Score below 620, an 8.1% increase over 2014. These newly issued loans have a corresponding total balance of $17 billion.

  • The average new auto loan amount issued in February 2015 was $20,310, a 4.2% increase over February 2014.

  • Through February, 24.2% of newly originated auto loans were issued to consumers with a subprime credit score, a slight increase in share compared to the same period last year.

  • The average subprime loan amount was $17,363 in February 2015, a 4.4% increase compared to February 2014.

  • Total auto loans and leases outstanding as of April 2015 was more than $1 trillion, with loans comprising $934 billion and leases making up $66 billion of that total.

  • Auto leasing has grown for both banks and finance companies. In April 2015, bank portfolios held 973,100 auto leases and finance companies held 6.63 million leases, a 12.1% and 19.1% year-over-year growth rate, respectively, in outstanding lease accounts.

Topics:Dealer Ops

Originally posted on F&I and Showroom

More Dealer Ops

red, black, and yellow car in a car dealership showroom, Growth Beyond Sales text box, Auto Dealer Today logo
Dealer Opsby Lauren LawrenceJuly 31, 2026

Dealership Profits Decline

While new and used retail sales stagnated, dealerships have been particularly supported by fixed operations and finance-and-insurance profits, according to a new report.

Read More →
Auto Dealer Today, Dealer Debrief, 07/15/2026, with Lauren Lawrence
Dealer Opsby Lauren LawrenceJuly 15, 2026

Dealer Debrief: Defection Data & EV Updates

In this week's debrief, host Lauren Lawrence discusses how to use defection data to your advantage and the latest on EV sales and charging infrastructure.

Read More →
Two professionals shake hands while exchanging a car key fob beside a vehicle, symbolizing a vehicle sale, lease agreement, or dealership transaction.
SponsoredJuly 8, 2026

How Defection Data is Bridging the Dealership Conversion Gap

Lead volume is flat, cross-shopping is up and brand loyalty is in retreat. As confident sales teams keep losing buyers they thought they had, daily industry sales data is showing dealers exactly where their funnel is breaking and how to fix it without buying a single new lead.

Read More →
Ad Loading...
Auto Dealer Today, Dealer Debrief, 07/02/2026 with Lauren Lawrence
Dealer Opsby Lauren LawrenceJuly 2, 2026

Dealer Debrief: Where are you losing customers?

In this week's debrief, host Lauren Lawrence discusses the hidden leaks in dealerships where you might be losing customers without even realizing it.

Read More →
Auto Dealer Today, Dealer Debrief, 06/25/2026, with Lauren Lawrence
Dealer Opsby Lauren LawrenceJune 26, 2026

Dealer Debrief: Improving Your Inventory Management

In this week's debrief, host Lauren Lawrence covers a new survey that shows what service technicians really want and two launches that could help improve your inventory and vehicle life cycle management.

Read More →
group of people standing in a circle holding puzzle pieces together
Dealer OpsJune 1, 2026

Ladies and Gentlemen, This Is a Dealership: Why the Fundamentals Still Decide Who Wins

A teaching moment by a legendary football coach happens to apply perfectly in the auto retail space. Learn what it is and how to use it to your store’s advantage.

Read More →
Ad Loading...
two cars on a billboard, No Hidden Fees
ComplianceMay 1, 2026

Dealer Ads and the FTC

The agency has made it clear in recent enforcement actions and warnings, in auto retail and other industries, that advertised prices must include all nonoptional costs to the consumer.

Read More →
Closeup of white car's headlight, front end
Dealer Opsby Hannah MitchellApril 17, 2026

Used Autos Supply Dwindles

The March shopping surge, despite high prices, cut into inventory by the most since the thick of the pandemic, Cox Automotive analysts calculated.

Read More →
hands making protective frame over red car, Risk Reality Check, Be Proactive, Auto Dealer Today logo
Dealer OpsApril 1, 2026

Managing Risk Effectively Through Changing Times

The variables influencing risk pricing have changed significantly over the past five years. Being proactive and responsive to emerging trends is not optional but essential.

Read More →
Ad Loading...
Car key, stacks of coins, and a paper car cutout with AutoPayPlus logo, representing auto financing, loan terms, and vehicle affordability trends.
Dealer Opsby StaffMarch 31, 2026

Survey Reveals What Won't Fix What's Breaking Car Sales

AutoPayPlus says extra-long auto loans are trapping consumers and threatening the dealer trade-in cycle, and that the industry is leveraging the wrong tools to combat high MSRPs.

Read More →