TransUnion’s Q3 2025 Credit Industry Insights Report finds a growing disparity among U.S. car buyers seeking auto loans, who increasingly find themselves in the highest- and lowest-risk credit tiers.

The subprime tier has grown steadily from an 11.8% share in Q3 2022 to 14.4% in Q3 2025, a 22% increase, while superprime borrowers represented 40.9% of the market in Q3, up 6.5% from Q3 2022’s 38.4%.

“This upward movement reflects continued financial stability among top-tier consumers,” analysts write in a release. “At the same time, the subprime segment has gradually returned to pre-pandemic levels after notable declines in 2020 and 2021, when many consumers were able to pay down debt and reduce credit account delinquencies during a period of reduced expenses and pandemic-related relief programs.”

A separate Q3 auto finance report from Edmunds found the average amount of negative equity carried by upside-down loans reached a new record of $6,905, adding to concerns the industry could be facing an affordability crisis.

Read more at TransUnion