Auto loans have hit a record high while fewer people have gotten behind on their payments, a new study says.
Drivers owed $782.9 billion on their auto loans in the third quarter, a number that rose $103 billion compared to the same quarter last year, USA TODAY reported.
The figure for outstanding loans is the highest since Experian Automotive began keeping track seven years ago, said a press release.
Loan delinquencies have dropped as the number of auto loans rose. The report revealed that 30-day auto loan delinquencies were down 3.4 percent year-over-year, falling from 2.67 percent in the third quarter of 2012 to 2.58 percent this year.
Lenders became more inclined to agree to auto loans as they saw that people were more willing to pay them, according to USA TODAY. The trends of increased loans and fewer loan delinquencies have worked together and strengthened the auto market.
"The combination of higher loan balances and relatively flat loan delinquencies is good news for everyone connected to the automotive industry, including consumers, lenders, retailers and manufacturers," Melinda Zabritski, senior director of Automotive Lending for Experian Automotive, said. "The availability of credit, combined with consumers' continued strong performance repaying their loans, has a positive spiral effect. It allows lenders to slowly but surely take on additional risk while providing more access to loans and paving the way for higher auto sales."
Car loan balances have risen across the nation, with California, Texas and Nevada showing the fastest growth. On the other hand, Hawaii, Wyoming and Michigan exhibited the slowest growth rates.
States that saw the biggest decline in 30-day delinquencies compared to last year were Hawaii, down 12.75 percent; Vermont, down 11.69 percent, and Oregon, down 11.64 percent. Rhode Island, Wyoming and Alaska showed the biggest jump in 30-day delinquencies year-over-year.
See Now: OnePlus 6: How Different Will It Be From OnePlus 5?
