agent Entrepreneur logo
MenuMENU
SearchSEARCH

Auto Loan Debt Up, Delinquencies Steady

Q2 saw a jump in new borrowing, leases, but no past-due loan growth.

August 5, 2025
Auto Loan Debt Up, Delinquencies Steady

Overall, $188 billion in new auto loans and leases were added to credit reports in the second quarter, up 13% quarter-over-quarter.

Credit:

Pexels/RDNE Stock Project

1 min to read


U.S. consumers’ automotive loan balances grew by $13 billion in the second quarter to about $1.7 trillion, though serious delinquency rates were about flat.

The Federal Reserve Bank of New York released the data in its Household Debt and Credit Report, basing the findings on its nationally representative Consumer Credit Panel.

Ad Loading...

The lack of growth in auto loans in arrears is good news, as student loan delinquencies are on the rise and can cause a ripple effect in other finance segments.  

Auto loans in serious delinquency, or at least 90 days past due, remained at 2.9% year-over-year, the bank said. Student loans in that category, meanwhile, ballooned from just under 1% to about 13% as past-due payments reported to credit bureaus – suspended from the second quarter of 2020 to the fourth quarter of last year – have resumed. 

Overall, $188 billion in new auto loans and leases were added to credit reports in the quarter, up 13% quarter-over-quarter, the bank said. The increase likely includes some of the spring-rush vehicle sales as consumers moved to get ahead of trade tariff-induced price inflation.

DIG DEEPER: More Dealers Offer Online Auto Buys

More Industry

F&Iby Lauren LawrenceFebruary 27, 2026

Price Driving Insurance Churn

Over half of insurance holders ages 18 to 29 reported to be 'somewhat' likely to change providers in the next 90 days, according to CivicScience, which found that interest was lower among older age groups.

Read More →
Industryby Lauren LawrenceFebruary 26, 2026

AI Drives Dealer Website Traffic

Total visits to dealer websites from generative artificial intelligence platforms grew more than 15 times year-over-year, signaling a shift in how many consumers shop for cars online.

Read More →
Industryby Hannah MitchellFebruary 26, 2026

Automakers Tops in Fuel Economy

In the U.S., Honda has the most efficient gas-electrified combo lineup while Tesla beats all automakers in annual EPA ranking as brands built their alternative-fuel offerings.

Read More →
Ad Loading...
F&Iby Lauren LawrenceFebruary 25, 2026

Report Finds Year-End F&I Strength

Deal volume ebbed and flowed throughout 2025, but product performance remained steady, according to automotive technology and data intelligence solutions provider StoneEagle.

Read More →
Industryby Hannah MitchellFebruary 24, 2026

Overall Consumer Confidence Up

Americans’ view of present business conditions, the labor market and family finances, though, are still in the dumps, and if they plan to buy cars, many target used units.

Read More →
Auto Financeby Lauren LawrenceFebruary 23, 2026

Auto Loan Forecast Bucks Market Trend

Auto loan originations rose over 6% year-over-year in the third quarter of 2025, but TransUnion predicts a slight decline in auto loan growth this year, making it an outlier in the company's overall lending forecast.

Read More →
Ad Loading...
F&Iby Hannah MitchellFebruary 23, 2026

Some Auto Brands Cheaper to Insure

A new top 10 list ranks the least expensive for average full insurance coverage on a clean driving record and high driver credit scores.

Read More →
Industryby StaffFebruary 20, 2026

Learn to Manage the Mayhem at Agent Summit

Rob Mancuso – president of Mancuso Automotive – will present a Keynote at the 2026 event.

Read More →
Fixed Opsby Hannah MitchellFebruary 20, 2026

Auto Recalls Sank Last Year

2025 Sedgwick data indicate that the number of vehicles affected fell to its lowest point in more than a decade.

Read More →
Ad Loading...
Industryby Lauren LawrenceFebruary 19, 2026

Affordability Leads Top-Rated List

Edmunds’ editorial team tested 300-plus vehicles to help determine the Top Rated Awards for 2026, and one brand stood out with multiple rankings, including Best of the Best.

Read More →