TransUnion Predicts 2.7% Growth in 2025 Auto Originations
TransUnion’s Q4 Credit Industry Insights report predicts U.S. auto loan originations will grow by 2.7% in 2025 with adjacent gains in the home (13.3%) and unsecured personal loan (5.7%) sectors.
The forecast is based on signs of a stabilizing credit environment and follows an earlier, unrelated Cox Automotive/Moody’s Analytics report that found new vehicle affordability on the rise in January. But it is tempered by factors ranging from changes to federal policy regarding imported vehicles and EVs and a recent pause in target lending rate reductions.
“The Federal Reserve has signaled that it will not rush into interest rate cuts, potentially keeping rates at a level that could give consumers pause,” writes Jason Laky, TransUnion’s executive vice president of financial services, in a release. “However, we still believe that many consumer credit products will have higher originations in 2025. This will range from modest growth in auto and unsecured personal loans to more significant increases in mortgage.”
