Certain auto loan numbers are stirring fear of a credit bubble. Earlier this month, Benzinga reported on Morgan Stanley analyst Adam Jonas' comment that the auto industry is in its largest loan bubble ever.
AutoTrader senior analyst Michelle Krebs discounted worries of an auto credit bubble in an interview with Benzinga Thursday morning.
"We have a saying in the auto industry: 'You can't drive your house to work in the morning,' which means that people will usually pay their car payment before even their house payment," Krebs said. She noted that car loan delinquencies are generally low.
Credit information service TransUnion predicted the national auto delinquency rate will decline to 1.11 percent by the end of 2016. The average car loan is $28,000, according to Krebs, so adjustments in interest rate or other factors generally only add up to a few dollars here and there each month.
Some indicators of a bubble remain, however. According to Experian data from October 2015, nearly 86 percent of all new cars and 55.5 percent of used cars were purchased with financing in 2015.
The auto industry saw record sales in 2015, shipping 17.4 million vehicles, according to Krebs. Some analysts are predicting another record-setting year, but Krebs was more conservative. She sees sales in the range of 17.4-18 million units.
CNBC auto reporter Phil LeBeau reported on Twitter Thursday that a Ford executive said in an earnings call they didn't think there were too many high-risk auto loans.
Ford Motor Company F shares were down nearly 3 percent since open at time of writing.
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