Tagged: auto loans

A credit reporting agency says the rate of overdue auto loans is at the lowest rate in more than ten years.

TransUnion says the rate of U.S. auto loan payments at least 60 days overdue fell in the second quarter to 0.33 percent. That's down about 25 percent from the same period last year and 8 percent from the first three months of this year.

Michigan is well below the national average, with 0.21 percent of borrowers delinquent on their car loans.

Fewer Americans are falling behind on their car loan payments.

That's according to a new report from the credit agency TransUnion. They say that in the first quarter of 2012, the amount of payments 60 or more days overdue fell by 22 percent compared to the same period last year.

Those findings mark the tenth consecutive quarter that auto loan delinquency rates have declined, something that could benefit car buyers by prompting banks to make more loans.

A press release from TransUnion quoted Peter Turek, automotive vice president in the agency's financial services business unit:

"Auto loan delinquencies continue to perform exceptionally... We are seeing increases in both lending and leasing across the board, along with a higher number of loans originated in the non-prime risk segments."

Turek said that TransUnion expects delinquency rates for the rest of the year to remain low, but said that "a slight increase from this record-low level would not be surprising and should not be construed as a negative event."

-John Klein Wilson, Michigan Radio Newsroom

Late payments on auto loans hit their lowest level since 1999 in the first quarter, providing more data that shows consumers have gotten a handle on their debt.

TransUnion said the rate of payments that are 60 days or more past due reached its lowest point since the credit reporting agency began tracking the figure, dropping to 0.49 percent.

The improvement from 0.66 percent a year ago reflects the stronger auto sales market, which is being fed by higher consumer confidence and low interest rates, says Peter Turek of TransUnion. The number of auto loans started during the quarter rose 22 percent from the prior year.

TransUnion expects late payments to continue to drop this year.