The recent surge in subprime auto loans was a key theme in the November report on household debt published by the New York Federal Reserve. The report disclosed that an increasing number of auto loans are being given to customers with a credit rating below 660, which is regarded as the cut-off for what constitutes a 'good' credit score. In the second quarter of 2015, loans originated to customers who place below that mark peaked at $58.4bn, the highest level in 10 years (see chart one).
