Auto Loan Fraud & Debt Statistics 2026
Research compiled by Veritas Financial Services | Last updated: September 2026
Auto loan fraud statistics for 2026 put estimated industry fraud exposure at $10.4 billion, while U.S. auto loan debt reached $1.71 trillion in the second quarter. The following report was compiled from data published between May 2024 and September 2026 by the Federal Reserve Bank of New York, the Federal Reserve Board, Experian, Point Predictive, TransUnion, the Federal Trade Commission, and Fitch Ratings. It benchmarks fraud exposure, fraud losses by type, identity theft reports, outstanding balances, loan terms, and delinquency, beginning with the fraud exposure chart below.
Auto Loan Fraud Statistics: 2026
Point Predictive’s annual fraud trends reports estimate how much loan value the industry is exposed to through application misrepresentation and identity fraud. The estimate has risen in each of the last three reports:
Estimated Auto Lending Fraud Exposure by Report Year: 2024 to 2026
Sources: Figure 11
Source note: Data compiled September 28, 2026.
The $10.4 billion estimate is up 13% from $9.2 billion in the prior report and nearly five times the 2010 level. Point Predictive’s 2026 report breaks the growth down further:
- Income and employment misrepresentation: 45% of total exposure, about $4.7 billion, up 21% year over year.
- AI-generated paystubs: up 500% in 2025.
- Bust-out fraud: up 67% over five years, with $250 million to $350 million in annual losses.
- Early payment defaults: the Early Payment Default Risk Index is more than double its 2017 baseline, and over 70% of early payment defaults show evidence of fraud at origination.
Auto Loan Fraud Losses by Type
TransUnion’s 2026 analysis measures realized fraud losses rather than exposure. First-party fraud, where applicants misrepresent their own information, posted the largest increase:
Auto Lending Fraud Losses by Fraud Type: Q3 2018 vs. Q3 2025
| Fraud Type | Q3 2018 Losses | Q3 2025 Losses | Change |
|---|---|---|---|
| First-party fraud | $88M | $323M | +267% |
| Synthetic identity fraud | $93M | $208M | +124% |
| Third-party fraud | $18M | $47M | +161% |
Sources: Table 22
Third-party fraud occurred at less than half its 2018 rate in the third quarter of 2025, yet losses were 2.6 times higher. TransUnion’s October 2025 study of loans originated from March to September 2023 adds three severity benchmarks:
- Average fraud loss per auto loan: $19,611, rising to $53,796 for super prime borrowers.
- Auto versus other credit: fraud losses on auto loans were 21 times those on credit cards and 6 times those on unsecured personal loans.
- Synthetic identities: borrowers flagged as likely synthetic identities had a bad rate 12.5 times that of other borrowers.
Credit Washing and Early Charge-Offs
Credit washing is the practice of disputing accurate negative items so they are suppressed from a credit file, which makes an applicant look stronger than they are. TransUnion measured its effect on 2024 auto loans:
12-Month Charge-Off Rate on 2024 Auto Loans by Credit Tier and Credit Washing Status
| Credit Tier | Borrowers with Suppressed Negative Items | All Other Borrowers |
|---|---|---|
| Prime | 5.6% | 1.2% |
| Super prime | 3.6% | 0.1% |
Sources: Table 33
The practice extends beyond auto lending. About 5% of U.S. consumers had charged-off accounts suppressed for unusual reasons in 2025, erasing an estimated $10 billion in debt from credit reports.
Identity Theft Reports Involving Auto Loans and Leases
Consumer reports to the Federal Trade Commission show how often stolen identities are used to open auto loans or leases:
FTC Identity Theft Reports Involving Auto Loans or Leases: 2020 to 2024
| Year | Reports | Change from Prior Year |
|---|---|---|
| 2020 | 72,535 | +88% |
| 2021 | 70,710 | -3% |
| 2022 | 60,348 | -15% |
| 2023 | 52,070 | -14% |
| 2024 | 60,188 | +16% |
Sources: Table 44
Auto loan and lease reports made up about a third of the 176,400 loan or lease identity theft reports filed with the FTC in 2024.
Auto Loan Debt Statistics: 2026
U.S. households held $1.713 trillion in auto loan debt in the second quarter of 2026, according to the Federal Reserve Bank of New York. That is up $28 billion from the prior quarter and $58 billion from a year earlier.
Outstanding U.S. Auto Loan Debt: 2020 to 2026
Sources: Figure 55
Auto Loan Balances, Originations, and Accounts: 2020 to 2026
| Year | Outstanding Balance | Annual Originations | Auto Loan Accounts |
|---|---|---|---|
| 2020 | $1.374T | $616.0B | 114.13M |
| 2021 | $1.458T | $733.9B | 111.02M |
| 2022 | $1.552T | $747.0B | 107.77M |
| 2023 | $1.607T | $684.9B | 107.79M |
| 2024 | $1.655T | $703.9B | 109.11M |
| 2025 | $1.667T | $718.2B | 107.58M |
| 2026 (through Q2) | $1.713T | $392.9B | 109.01M |
Sources: Table 66
Balances and account counts are as of the fourth quarter unless noted. Annual originations are the sum of quarterly New York Fed figures. Account counts include joint accounts and overstate unique borrowers.
Originations reached $211 billion in the second quarter of 2026, while the median credit score on newly originated auto loans fell 7 points. The New York Fed figure comes from credit report data and includes leases. The Federal Reserve’s G.19 release, which counts loans held by lenders, put motor vehicle loans outstanding at $1.575 trillion for the same quarter.
Average Auto Loan Amount, Rate, Payment, and Term
Experian’s second-quarter 2026 data shows the typical loan a lender books today:
Average Auto Loan Terms by Vehicle Type: Q2 2026
| Vehicle Type | Average Loan Amount | Average Interest Rate | Average Monthly Payment | Average Term |
|---|---|---|---|---|
| New | $43,610 | 6.35% | $765 | 69.5 months |
| Used | $27,852 | 11.19% | $542 | 67.9 months |
Sources: Table 77
Balances keep rising even as rates ease. The average new-vehicle loan grew $1,715 year over year while its rate fell from 6.79% to 6.35%. Longer terms add to the exposure: 35.55% of new-vehicle loans ran longer than 72 months in the first quarter of 2026, up from 30.83% a year earlier. Subprime borrowers accounted for 15.75% of all vehicle financing, up from 14.40%.
Serious Auto Loan Delinquency Statistics
Serious delinquency has risen steadily since 2022. The share of auto balances 90 or more days delinquent reached 5.49% in the second quarter of 2026:
Serious Auto Loan Delinquency: 2020 to 2026
| Period | Share of Balances 90+ Days Delinquent | Share of Balances Newly 90+ Days Delinquent |
|---|---|---|
| Q4 2020 | 4.77% | 1.84% |
| Q4 2021 | 3.98% | 1.56% |
| Q4 2022 | 3.73% | 2.22% |
| Q4 2023 | 4.17% | 2.66% |
| Q4 2024 | 4.83% | 2.96% |
| Q4 2025 | 5.21% | 2.95% |
| Q2 2026 | 5.49% | 3.00% |
Sources: Table 88
Subprime performance is under the most strain. Fitch Ratings’ subprime auto ABS index recorded a record 6.90% of balances 60 or more days delinquent in its January 2026 reading, up from 6.45% a year earlier. For a deeper look, see our Auto Loan Delinquency and Default Rate Trends report.
Larger balances, longer terms, and $10.4 billion in estimated fraud exposure raise the stakes on every loan a lender books and every loan that ends early. When a loan ends before its term, the ancillary products attached to it still carry refunds that must be calculated and returned correctly. Veritas provides fully managed, compliant ancillary product cancellation and refund recovery for auto lenders across all 50 states. To see how the process works end to end, schedule a demo with Veritas.
References:
1. Point Predictive. (2026, April 8). Point Predictive releases 2026 Auto Lending Fraud Trends Report: Fraud exposure reaches record $10.4 billion. https://pointpredictive.com/press-releases/point-predictive-releases-2026-auto-lending-fraud-trends-report-fraud-exposure-reaches-record-10-4-billion/
2. Point Predictive. (2025, March 25). 2025 Auto Lending Fraud Trends Report: $9.2 billion industry risk. https://pointpredictive.com/press-releases/2025-auto-lending-fraud-trends-report-9-2-billion-industry-risk/
3. Point Predictive. (2024, May 9). Point Predictive releases 2024 Auto Lending Fraud Trends Report identifying $7.9 billion industry fraud loss exposure. https://pointpredictive.com/press-releases/point-predictive-releases-2024-auto-lending-fraud-trends-report-identifies-7-9-billion-industry-fraud-loss-exposure/
4. Point Predictive. (2026, September 1). Point Predictive launches Bust-Out Alert and an industry working group to solve auto loan stacking. https://pointpredictive.com/press-releases/point-predictive-launches-bust-out-alert-and-an-industry-working-group-to-solve-auto-loan-stacking/
5. Point Predictive. (2026). 2026 Auto Lending Fraud Trends Report. https://landing.pointpredictive.com/2026-fraud-trends-report
6. TransUnion. (2026, July 23). Auto loan fraud losses more than triple in key categories, new TransUnion analysis finds. https://newsroom.transunion.com/auto-loan-fraud-losses-more-than-triple-in-key-categories-new-transunion-analysis-finds/
7. TransUnion. (2025, October 16). Auto lending fraud analysis. https://newsroom.transunion.com/auto-fraud-oct-2025/
8. Federal Trade Commission. (2025, March). Consumer Sentinel Network data book 2024. https://www.ftc.gov/system/files/ftc_gov/pdf/csn-annual-data-book-2024.pdf
9. Federal Trade Commission. (2024). Consumer Sentinel Network data book 2023. https://www.ftc.gov/reports/consumer-sentinel-network-data-book-2023
10. Federal Trade Commission. (2023). Consumer Sentinel Network data book 2022. https://www.ftc.gov/reports/consumer-sentinel-network-data-book-2022
11. Federal Trade Commission. (2022). Consumer Sentinel Network data book 2021. https://www.ftc.gov/reports/consumer-sentinel-network-data-book-2021
12. Federal Trade Commission. (2021). Consumer Sentinel Network data book 2020. https://www.ftc.gov/reports/consumer-sentinel-network-data-book-2020
13. Federal Reserve Bank of New York. (2026, August 11). Quarterly report on household debt and credit, 2026 Q2. https://www.newyorkfed.org/medialibrary/interactives/householdcredit/data/pdf/HHDC_2026Q2.pdf
14. Federal Reserve Bank of New York. (2026, August 11). Household debt and credit report press release, Q2 2026. https://www.newyorkfed.org/newsevents/news/research/2026/20260811
15. Federal Reserve Board. (2026, September 8). G.19 Consumer credit. https://www.federalreserve.gov/releases/g19/current/default.htm
16. Experian. (2026, August 27). Hybrids continue to gain ground amid elevated gas prices. https://www.experianplc.com/newsroom/press-releases/2026/hybrids-continue-to-gain-ground-amid-elevated-gas-prices–accord
17. Experian. (2026, September 10). Average car payment. https://www.experian.com/blogs/ask-experian/average-car-payment/
18. Experian. (2026, May 28). New Experian automotive report shows nearly one-third of automotive loans. https://www.experianplc.com/newsroom/press-releases/2026/new-experian-automotive-report-shows-nearly-one-third-of-automot
19. Auto Remarketing. (2026, May 21). Fitch: Stress in subprime surfaces through auto ABS trends. https://www.autoremarketing.com/subprime/fitch-stress-in-subprime-surfaces-through-auto-abs-trends/
1Figure 1
1. Point Predictive. (2026, April 8). Point Predictive releases 2026 Auto Lending Fraud Trends Report: Fraud exposure reaches record $10.4 billion. https://pointpredictive.com/press-releases/point-predictive-releases-2026-auto-lending-fraud-trends-report-fraud-exposure-reaches-record-10-4-billion/
2. Point Predictive. (2025, March 25). 2025 Auto Lending Fraud Trends Report: $9.2 billion industry risk. https://pointpredictive.com/press-releases/2025-auto-lending-fraud-trends-report-9-2-billion-industry-risk/
3. Point Predictive. (2024, May 9). Point Predictive releases 2024 Auto Lending Fraud Trends Report identifying $7.9 billion industry fraud loss exposure. https://pointpredictive.com/press-releases/point-predictive-releases-2024-auto-lending-fraud-trends-report-identifies-7-9-billion-industry-fraud-loss-exposure/
2Table 2
1. TransUnion. (2026, July 23). Auto loan fraud losses more than triple in key categories, new TransUnion analysis finds. https://newsroom.transunion.com/auto-loan-fraud-losses-more-than-triple-in-key-categories-new-transunion-analysis-finds/
3Table 3
1. TransUnion. (2026, July 23). Auto loan fraud losses more than triple in key categories, new TransUnion analysis finds. https://newsroom.transunion.com/auto-loan-fraud-losses-more-than-triple-in-key-categories-new-transunion-analysis-finds/
4Table 4
1. Federal Trade Commission. (2025, March). Consumer Sentinel Network data book 2024. https://www.ftc.gov/system/files/ftc_gov/pdf/csn-annual-data-book-2024.pdf
2. Federal Trade Commission. (2024). Consumer Sentinel Network data book 2023. https://www.ftc.gov/reports/consumer-sentinel-network-data-book-2023
3. Federal Trade Commission. (2023). Consumer Sentinel Network data book 2022. https://www.ftc.gov/reports/consumer-sentinel-network-data-book-2022
4. Federal Trade Commission. (2022). Consumer Sentinel Network data book 2021. https://www.ftc.gov/reports/consumer-sentinel-network-data-book-2021
5. Federal Trade Commission. (2021). Consumer Sentinel Network data book 2020. https://www.ftc.gov/reports/consumer-sentinel-network-data-book-2020
5Figure 5
1. Federal Reserve Bank of New York. (2026, August 11). Quarterly report on household debt and credit, 2026 Q2. https://www.newyorkfed.org/medialibrary/interactives/householdcredit/data/pdf/HHDC_2026Q2.pdf
6Table 6
1. Federal Reserve Bank of New York. (2026, August 11). Quarterly report on household debt and credit, 2026 Q2. https://www.newyorkfed.org/medialibrary/interactives/householdcredit/data/pdf/HHDC_2026Q2.pdf
7Table 7
1. Experian. (2026, August 27). Hybrids continue to gain ground amid elevated gas prices. https://www.experianplc.com/newsroom/press-releases/2026/hybrids-continue-to-gain-ground-amid-elevated-gas-prices–accord
2. Experian. (2026, September 10). Average car payment. https://www.experian.com/blogs/ask-experian/average-car-payment/
8Table 8
1. Federal Reserve Bank of New York. (2026, August 11). Quarterly report on household debt and credit, 2026 Q2. https://www.newyorkfed.org/medialibrary/interactives/householdcredit/data/pdf/HHDC_2026Q2.pdf