Finance Companies Beat Banks, CUs in Auto Loans
Equifax’s latest data shows lending from auto finance companies has increased by more than 47% since 2009.
According to the firm’s National Credit Trends Report, 854,800 loans were originated from auto finance companies in July 2011 compared to 581,300 in July 2009.
Credit unions and banks originated 820,200 loans in July 2011 compared to 832,000 for July 2009, which amounts to a decrease of less than 2%.
From January to July, 11.3 million new auto loans totaling $213.9 billion were originated, the report showed.
Meanwhile, Equifax said delinquency rates continue to improve for those auto loans that are 60 or more days late.