Equifax said the auto lending sector's recent gains have comefrom improvement in consumer payment behavior.

In its May 2011 National Credit Trend Report released July 5, thecompany reported the total number of auto loan originations for thefirst quarter 2011 increased by 20% over first quarter 2010levels.

March's auto loan originations represented $1.8 million, thelargest monthly total since summer 2008 and eclipsed monthly totalsof $1.6 million driven by the Cash for Clunkers program in summer2009, according to Equifax.

That same month, the average auto loan amounts among allborrowers was $18,661 at banks, credit unions and savings and loaninstitutions compared to $18,463 in March 2010.

March 2011 new auto loan payments among all borrowers wasslightly lower than March 2010 averages at $366 banks, creditunions and S&Ls versus $377 in March.

Equifax reported the average loan amount for prime borrowers isnow approximately equal to or slightly higher than pre-recessionlevels. Auto delinquencies and write-offs are also approachingpre-recession levels with both continuing to improve this year, thefirm noted.

“While some sectors of the economy – most notably housing –continue to struggle, the auto lending sector has displayedpositive gains based on loosening of credit to both prime andsubprime borrowers paired with improvements in consumer paymentbehavior, which is reflected in the declining number of auto loandelinquencies,” said Michael Koukounas, senior vice president ofspecial client services for Equifax.