Outstanding auto-loan balances in the U.S. reached a record-high $1.1 trillion in the second quarter, a 7.1 percent rise, according to Experian's latest State of the Automotive Finance Market report released Thursday.
The source of the growth was loans to prime buyers, as subprime and deep subprime originations continued to fall in the second quarter.
Total subprime loan and lease originations dipped to 18.4 percent of the market, from 19.3 percent in the year-earlier quarter. Deep subprime origination share also fell slightly to 3.45 percent, vs. 3.54 percent a year earlier.
Prime and superprime share, on the other hand, grew from year-earlier levels. Superprime loan and lease originations made up 19.1 percent of the market, up from 17.9 percent. Prime loan and lease originations dominated the market with a 39.4 percent share, vs. 39.0 percent a year earlier.
Prime borrowers' origination share has grown in recent quarters. In line with that, the 30-day delinquency rate for all loans and leases has declined. In the second quarter, the 30-day delinquency rate was 2.20 percent, down from 2.22 percent a year earlier.
The 60-day delinquency rate, though, crept up to 0.67 percent from 0.62 percent a year earlier.