The American Financial Services Association (AFSA) has responded to a report by the Consumer Federation of America and USA Today, asserting that it misrepresents the state of auto financing. The AFSA emphasized that debt burdens are stable, delinquencies remain steady, and vehicle costs are influenced by broader factors. This announcement was made on its website.
According to the Federal Reserve Bank of New York’s Household Debt and Credit Report for the second quarter of 2025, aggregate auto debt in the U.S. has reached $1.66 trillion, making auto loans the second-largest category of consumer debt after mortgages. Auto loan balances increased by approximately $13 billion from the previous quarter. Despite this growth, delinquency transition rates for auto loans into serious delinquency (90+ days past due) have remained largely stable.
Delinquency metrics for auto loans indicate stability or mild improvement rather than a crisis. The same New York Fed report shows that the transition rate into serious delinquency for auto loans in Q2 2025 was 2.93%, very similar to the previous period. Early delinquency (30+ days past due) on auto balances was either falling or leveling off, suggesting fewer new loans are falling behind shortly after origination. This suggests consumer repayment capacity in auto finance remains resilient under current economic conditions.
Vehicle costs are being driven by various factors beyond lender or dealer practices, including regulatory changes, supply chain issues, and technological advancements. For instance, safety and fuel-efficiency regulations have increased manufacturing costs; component shortages and global supply chain disruptions—such as semiconductor shortages—continue to affect vehicle availability and pricing. Additionally, inflation in material costs like steel and plastics—along with shipping and labor expenses—are contributing to higher sticker prices, placing upward pressure on loan amounts even when finance terms remain reasonable.
The American Financial Services Association is a national trade association representing the U.S. consumer credit industry, including auto finance companies, personal loan lenders, installment lenders, credit card issuers, among others. Its members extend credit to millions of consumers; thus AFSA is directly affected by trends in auto debt levels, delinquencies, vehicle pricing, and regulatory frameworks. AFSA states its mission includes promoting fair and transparent credit markets while ensuring access to responsible credit and countering misleading narratives that may harm both consumers and industry stability.