Asset Quality
Auto Loans
Auto Loans are consumer or business loans secured by vehicles. The product is split between captive lenders (Toyota Financial, Ford Credit), banks, and credit unions; banks hold roughly $500B of US auto debt out of a $1.7T total.
Formula
The category captures direct (consumer-initiated) and indirect (dealer-routed) auto loans, both new and used vehicles. Some banks report auto loans as a distinct line; others aggregate under 'other consumer loans.' Indirect auto loans dominate at the largest bank auto lenders.
Why it matters
Auto loans are the bank consumer-credit product most directly exposed to used-car valuation cycles. The 2020-2022 used-car price spike (and subsequent 30-40% decline) produced loss-given-default volatility unprecedented since the 2008 cycle. Repossession and disposition economics depend heavily on residual values.
How to interpret
Auto loans / Total Loans above 10% signals an active auto lending business; above 25% (rare among large banks) suggests a specialty lender. Credit losses are highly cyclical and term-sensitive — longer-term (72-84 month) loans have materially higher loss rates than shorter-term loans.
Thresholds
| Range | Label | Interpretation |
|---|---|---|
| < 5% of loans | Light | Modest auto exposure. |
| 5–15% | Active | Established auto lending business. |
| 15–25% | Heavy | Auto-focused consumer portfolio. |
| > 25% | Specialty | Auto-led lender. |
Worked example
Frequently asked
Are bank auto loans separate from captive-finance auto loans?
Yes. Toyota Financial, Ford Credit, GM Financial, and similar manufacturer captive lenders are non-bank entities (or thrift subsidiaries) and report through different regulatory channels. Bank-held auto loans are the share visible in call-report data.
Why are longer-term auto loans riskier?
Vehicle depreciation outpaces loan amortization, producing negative equity (loan amount greater than vehicle value) for much of the loan's life. A 84-month loan can be underwater for 60+ months — making loss-given-default substantially higher than on a 48-month loan.
How did 2024-2025 used-car prices affect auto loss rates?
Used-car prices declined materially from 2022 peaks (down approximately 25%). Repossession recoveries fell correspondingly. Loss-given-default in auto portfolios climbed 200-300bps year over year through 2024 before stabilizing in 2025.
Sources
- FFIEC Call Report Schedule RC-C, Line 6.c
- Federal Reserve G.19 — Consumer Credit Outstanding (Auto)
See Auto Loans across 4,335 US banks
BankRegReports ranks every FDIC-insured institution by Auto Loans, refreshed quarterly within 48 hours of FFIEC release.