McLEAN, Va. -

Consumers from up and down the credit spectrum have been able to secure vehicle financing relatively easily for the past 12 months, leading a resurgence in originations and sales of both used and new vehicles.

While that financing faucet is currently flowing strong, analysts from NADA Used Car Guide contend that stream might slacken a bit during the second half of the year.

“Much has been made of the role of pent-up demand in the automotive market’s recovery over the past few years, but less discussed has been the large role credit has played in its resurgence,” analysts said in the “2014 Used Vehicle Price Forecast” special report from NADA UCG

Per data from the Federal Reserve, the report mentioned new-model auto loan interest rates were at their lowest level in at least 40 years in 2013. Analysts also noted that after years of recession-led deleveraging, household debt as a percent of income fell to levels last observed in the early 1990s.

“So not only were interest rates keeping the cost of borrowing very low, the anxiety of taking on more debt was greatly reduced,” analysts said.

NADA UCG reiterated that lender willingness to extend credit has also been very high.

At $850 billion, outstanding auto loan debt exceeded pre-recession levels in the third quarter last year according to the Federal Reserve Bank of New York. Meanwhile Experian Automotive data shows that the below-prime share of used-vehicle loans averaged nearly 56.7 percent through Q3 2013 — up from 2012’s like-period average of 55.9 percent and essentially equal to 2007’s three-quarter average of 56.6 percent.

Additional examples of lender eagerness culled from Experian data include progressively higher loan-to-value ratios and the willingness to extend loan terms.

The average length of new-vehicle loan terms grew from 63 months at the end of 2010 to 65 months through the third quarter of 2013, while used-vehicle terms grew from 58 to 61 months over the same period.

Analysts went on to highlighted the extraordinary conditions of the past few years are also clearly evident in NADA UCG’s credit composite, which reflects credit conditions based on interest rates, the ability and ease in obtaining credit, and consumer comfort with taking on additional debt.

Last year, the composite portrayed credit conditions that were at their most positive level for used vehicle prices in more than 20 years. And by the report’s estimation, credit has added 5 percent to 6 percent to used-vehicle prices since 2010.

“Considering the strength of today’s credit environment relative to years past, we believe conditions will begin to become slightly less favorable toward the latter half of the year as the market transitions from a uniquely positive period to one more in line with historic norms,” analysts said.

“And while the prevailing sentiment is that rates will stay relatively flat for stronger credit tiers, they should begin to inch up for lower-tier borrowers as lenders react to the heightened level of risk presented by the growing below-prime share of loan portfolios,” they went on to say.