The monthly update surfaced earlier this week about how auto-finance defaults improved again. Perhaps that trend stems at least in part to less subprime paper flowing into portfolios.

The latest metrics shared by Equifax indicated that 2.78 million contracts were originated through June to consumers with a VantageScore 3.0 credit score below 620 — accounts that are generally considered subprime accounts. Analysts pointed out that figure represented a 1.6-percent decrease compared to the midpoint of 2017.

Equifax discovered this newly issued subprime paper has a corresponding total balance of $49.9 billion, computing into a 0.9-percent dip year-over-year.

All told, Equifax determined that buyers are financing their vehicle purchase in greater numbers and for more amounts so far in 2018; even above the pace set in 2016 that represented record-setting sales.

Through the first half of the year, Equifax said providers have booked 14.4 million retail installment contracts and vehicle leases, totaling $311.7 billion. Those metrics marked a 1.2-percent uptick in accounts and a 2.8-percent rise in balances compared to the opening six months of 2017.

Purchasing a vehicle remains most prevalent as Equifax indicated that method constituted 86.1 percent of all new accounts coming into portfolios, a penetration that represents 12.4 million installment contracts. That origination pace is up by 1.6 percent year-over-year.

And the risk finance companies are accepting is growing, too, since Equifax noted that outstanding balances on those contracts totaled $279.2 billion, which is 3.5 percent higher year-over-year.

However as mentioned, the subprime slice is softening, at least a little.

Equifax said that through June, 22.5 percent of installment contracts were issued to consumers with a subprime credit score, and they accounted for 17.9 percent of origination balances. Halfway through 2017, the account share stood at 23.3 percent, and balance share came in at 18.7 percent, according to Equifax.

Analysts went on to mention the average amount financed for all contracts issued through June climbed 2.2 percent year-over-year to $22,899. The average amount financed in a subprime deal came in at $18,205, representing a 1.9-percent climb year-over-year.

Equifax deputy chief economist Gunnar Blix reiterated why consumers are having to turn to financing to secure the vehicle they want or need.

“Despite a pace of sales that’s slightly off the record-setting mark of 2016, car shoppers are financing more through the mid-way point of this year, a clear reflection of the continued increase in the price of cars and trucks,” Blix said.

“We’re also continuing to see strong sales activity for used vehicles, with the first half of 2018 on pace with what we saw in 2017, as shoppers realize they can find bargains on slightly used, off-lease vehicles that are readily available,” he continued.