People Are Buying: New Auto Loan Dollar Amounts Climb by 88 Percent --Indicates Continued Growth In Lending Sector

ATLANTA--May 10, 2011: In a positive sign for the U.S. economy, automobile lending continues to increase with average loan amounts generated through auto finance companies up 88 percent over 2009 levels -- according to Equifax's National Credit Trends Report for March 2011.

According to this report, the total number of auto loans originated in January 2011 is up nearly 24 percent over January 2010 originations, with those sourced through auto finance companies increasing by 40 percent, and those sourced through banks, credit unions and savings and loans up 9 percent.

Borrowers with Equifax Risk Scores of 640 or above represented nearly 84 percent of all new auto loans sourced through banks, credit unions and savings and loans in January 2011; while this same group represents nearly 65 percent of all loans sourced through auto finance companies.

Additionally, the industry continues to see a decline in write-offs, with January-March 2011 auto loan write-offs at a five-year low at $5.5 billion, representing a decrease of 35 percent from January-March 2010 levels.

"The number of new auto loans represents the largest increase among tracked lending sectors within the Equifax Credit Trends Report," said Michael Koukounas, Senior Vice President - Special Client Services for Equifax. "The data also reflects declines in write-offs, with delinquencies falling to 2007 levels -- following their peak in 2009. This, paired with increasing originations, underlies the beginning of auto portfolio growth."