Late Payments on Auto Loans Fall in 2nd Quarter

Associated Press
August 30, 2010
Connelly, Eileen AJ

TransUnion reports that the rate of auto loan payments 60 days or more past due slipped to 0.53 percent of outstanding auto loans in the second quarter, compared to 0.73 percent a year ago. The drop in the auto loan delinquency rate mirrors declines in late credit card and mortgage payments. Separately, new loans written during the second quarter rose 18.7 percent, reflecting an uptick in car purchases and a move on buyers' parts to take advantage of automakers' aggressive sales promotions. Delinquency rates rose in three states but were below the national average in 28 states and the District of Columbia. According to Peter Turek, automotive vice president in TransUnion's financial services group, the lingering effects of the recession will have a bigger impact in some regions given the close correlation between unemployment and auto loan payments. TransUnion expects the auto delinquency rate to rise to about 0.6 percent by year-end.
Web Link