Research Links Thriving Auto Loan Industry to Recovering Economy

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New research from has found that the increase in auto loan debt corresponds with lowered unemployment and an improved economy.

As consumers gain faith in the market they become more willing to make major purchases, including new vehicles.

A new study from found that the decrease in unemployment corresponded to an increase in auto loan debt and new car loan originations.

The study combines employment reports issued by the Bureau of Labor Statistics with the Federal Reserve’s Quarterly Report on Household Debt to show the correlation between auto loan debt and employment rates. It found that, between Q3 2009 and Q1 2013, auto loan borrowing consistently went up as unemployment rates went down.

Economist Mike Schenk told that as employment increases, so do family incomes. This increase in income makes consumers more willing to make large purchases.

Further research revealed that auto loan delinquencies declined with unemployment. In Q3 2009, unemployment was just over 9 percent and 90-day auto loan delinquencies were at nearly 5 percent. In Q1 2013, unemployment was under 8 percent and delinquencies were below 4 percent. The study found that increased cash flow, caused by increased employment, allowed more Americans to make timely payments on their auto loans.

To read the study in its entirety, please visit, or visit the “Research” page at

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About is a leading lending authority website that covers financial news, produces informative articles, and answers frequently asked questions. In addition to providing lending-related information, also hosts a variety of free online application forms for prospective borrowers to use when applying for loans.

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