The total balance of open automotive loans climbed 11.1 percent in the first quarter of 2016, surpassing the trillion dollar mark for the first time on record, Experian Automotive announced today. According to the most recent State of the Automotive Finance Market report, loan balances reached $1.005 trillion in Q1 2016, up from $905 billion in Q1 2015. Open leases grew by 27.55 percent to an all-time high of $76.9 billion, up from $73.1 billion the previous year. The market first reached the trillion dollar mark — with the combined total balance of open loans and leases — in Q3 2015.

"Automotive financing certainly has started off the year with a bang, seeing steady growth in balances and loan volumes throughout the first quarter," said Melinda Zabritski, senior director of automotive finance for Experian. "With more and more consumers relying on financing, it is important for lenders to keep a close eye on delinquency trends to ensure the market remains healthy. Likewise, consumers need to continue making their monthly payments on time to keep affordable financing options open and available."

Findings from the report also show that while there were increases in both 30- and 60-day delinquency rates, the overall percentage of total delinquent loans remains relatively low when compared to pre-recession levels. In Q1 2016, the percentage of loans and leases considered 30-days delinquent was 2.1 percent, up from 2.02 percent in Q1 2015. Additionally, the percentage of loans and leases considered 60-days delinquent grew from 0.57 percent to 0.61 percent over the same time period.

Some additional insights from the Q1 2016 report:

• The volume of vehicle loans and leases held by nonprime and subprime consumers increased by 9.5 percent and 10.9 percent, respectively
• Prime consumer loans and leases increased by 8.9 percent
• Finance companies and credit unions saw the largest growth in loan and lease market share, growing 25.6 percent and 15.9 percent, respectively
• Banks continued to hold the top position in automotive loan and lease volume, growing 7.9 percent over the previous year to reach $349 billion in market share

Experian Automotive provides information services and market intelligence that enables results-driven professionals to gain the fullest possible understanding of the market, the vehicles and the people who buy them. Its North American Vehicle DatabaseSM houses data on nearly 700 million vehicles and, when combined with Experian's credit, consumer and business information, provides an integrated perspective into the automotive marketplace. Experian Automotive's AutoCheck® vehicle history reports provide dealers and consumers with in-depth information, allowing them to confidently understand, compare and select the right vehicles.