When Equifax looked at its most recent auto finance data, analysts considered the trend that finance companies might be tightening their underwriting a bit.

Still based on the August Equifax National Consumer Credit Trends Report, analysts noticed what they called “healthy growth” in originations. Equifax indicated that newly opened auto loans and installment contracts year-to-date through June and reported to Equifax as of August represented a rise of 3.5 percent versus the same period a year ago. 

Analysts noted that balances on new originations grew 5.5 percent. Perhaps what triggered the tightening thought, they added that the share of financing originated to borrowers with an Equifax Risk Score of less than 620 — generally considered to be subprime accounts — fell 0.6 percent versus the first six months of 2015.

“Lenders in general have been very risk averse since the Great Recession, with more and more using all the tools available to accurately rate and price the risks they are taking and to sensibly decide which ones they don’t want to take,” said Amy Crews Cutts, chief economist at Equifax.

“Lending in the subprime segment can be done well and to the mutual benefit of consumers and lenders, provided the whole credit-collateral-capacity picture of the loan is healthy. In recent months there has been a shift in the share of new loans going to higher-credit quality borrowers, possibly indicating tightening of lending standards,” Crews Cutts continued.

Equifax indicated performance of the auto finance market is holding steady at very low levels.

As of August, the severe delinquency rate (defined as share of balances that are 60 days or more past due) stood at 1.05 percent, which is a slight increase of 7 basis points over August of last year.

The write-off rate is at 21.2 basis points, which is an increase of 1.8 basis points year-over-year.

Delinquencies, including seasonal variations, have stayed tightly within the range of 0.8 percent to 1.25 percent since March of 2013 while write-off rates have varied between 18.2 and 23.0 basis points.

“The market is starting to see slowing demand, which means lenders will have to contend with increased competition for consumer loans which will drive a need for increased market intelligence to properly identify and mitigate risk in this environment,” said Lou Loquasto, vice president at Equifax, who will be one of the experts on hand for the SubPrime Forum during Used Car Week at the Red Rock Resort and Casino in Las Vegas on Nov. 14-18.

Equifax insisted that consumer credit data is the most accurate way to assess a consumer’s financial health and a useful tool in assessing current performance of the auto lending industry. In line with this assessment and in response to the need for enhanced market intelligence in the auto lending environment, Equifax plans to announce details around its new auto finance market intelligence platform later this week.

 Other highlights from the report include:

—As of August, auto finance portfolio balances are growing at a higher rate year-over-year for banks than finance companies (10.6 percent and 6.8 percent respectively). Year-over-year growth rates in the number of auto accounts are slightly lower for finance companies (4.9 percent) than banks (7.0 percent).

 —In August auto leasing showed signs of growth for both banks and finance companies, with a 14.1 percent and 16.1 percent year-over-year increase, respectively.

 —Year-over-year consumers are spending more on the vehicles they are purchasing. The average origination amount for all auto contracts issued in June was $21,392. This figure marked a 3.5 percent increase over June of last year.