"The estimated number of weeks of median household income necessary to purchase the average new vehicle in April was up 18 percent from last year." Amid those challenges, the total volume of auto loans has dropped. In the past three months of 2021, according to TransUnion, the number of loans originated dropped by 3 percent to 6.5 million from the same period the previous year. That may be satisfactory enough for the Federal Reserve to conclude that financial conditions have tightened as hoped for. In the meantime, TransUnion said creditors appear to be responding to changing conditions by offering various types of forbearance to borrowers. "Supply shortages have driven up vehicle prices, and the shutdown of international factories will lead to a growing lack of inventory throughout the remainder of the year," TransUnion said in a May 23 blog post. "On top of increasing vehicle prices, rising inflation will also have an impact on consumer purchasing power.