Equifax deputy chief economist Dennis Carlson used imagery of the plumbing that might be in your home to describe the industry surpassing $1 trillion in outstanding auto loan balances in June.

The credit bureau’s data showed total outstanding balances on vehicle installment contracts and leases increased 10.5 percent year-over-year to come in at $1.021 trillion last month. Equifax also reported the number of outstanding accounts rose 8.0 percent from a year ago to 73.7 million.

During phone interview when Equifax shared this data exclusively with SubPrime Auto Finance News, Carlson explained, “Essentially if you think of the total dollar value of loans outstanding, it’s like a bathtub and there’s a spigot and a drain. Right now, the spigot is filling the tub faster than the drain of people paying off their car.

“It speaks to the consumer pent-up demand and appetite for new-to-them automobiles,” he continued when elaborating about what eclipsing the $1 trillion mark means to the industry. “Obviously we’ve seen pretty strong new-car sales numbers, but the new-car sales don’t tell the whole story. Certainly used cars are being financed as well.

“It shows a lot of consumers feel they’re in a position to replace their older cars with a car that’s new to them,” Carlson added.

The flow from that spigot Carlson mentioned certainly hasn’t slowed, according to the origination information Equifax made available that recorded activity through April.

During the first four months of 2015, Equifax indicated more than 9 million auto loans filled portfolios, totaling $182.9 billion. These figures represented a 5.8-percent increase in the number of accounts and an 8.0-percent rise in balances compared to a year earlier.

Analysts also pointed out the figures marked the highest levels for the period since Equifax began tracking this data.

Overall, Equifax determined finance companies are growing originations more quickly than commercial banks with 54.2 percent of all new auto accounts and 51.8 percent of dollar originations through April were booked by finance companies.

The upward trends are notable in the subprime space, too.

Analysts reported 2.12 million auto loans were originated through April to consumers with an Equifax Risk Score below 620, what this credit bureau generally considers subprime accounts. The figure marked a 9.6-percent increase year-over-year. These newly issued contracts have a corresponding total balance of $37.2 billion, an 11.7 percent increase year-over-year.

Also noteworthy, Equifax mentioned that through April, 23.5 percent of auto loans were issued to consumers with a subprime credit score.

The average amount for all auto loans generated in April was $20,800, signifying a 3.65-percent increase year-over-year. Also according to Equifax, the average subprime loan amount booked in April came in at $18,200, a 3.74-percent rise year-over-year.

Editor’s note: Watch for a report coming in Friday’s edition of SubPrime News Update containing Carlson’s analysis of Equifax’s data regarding delinquency and write-offs.