Southwest Economy, Third Quarter 2019
Texans Help Drive National Increase in Auto Loan Debt
Despite strong economic growth in recent years, Texas auto loan delinquency rates have risen to levels unseen since just after the Great Recession. A recent drop in the subprime share of auto loan originations—typically involving less-creditworthy buyers—suggests delinquency rates are likely to fall. However, risks remain elevated because of factors including longer loan duration and young borrowers’ increasing student loan indebtedness.