Auto-loan delinquency rates plunge

Auto-loan delinquency rates in the United States have fallen to their lowest point in at least a dozen years, according to risk management firm TransUnion.

The percentage of borrowers who are at least 60 days past due on their vehicle payments fell to 0.36 percent in the first quarter of 2012, TransUnion says. That's the lowest rate since the firm started reporting the data in 1999.

Compared with the first quarter of last year, delinquency rates dropped almost 27 percent from 0.49 percent . From the fourth quarter of 2011, rates fell nearly 22 percent from 0.46 percent.

"Auto loan delinquencies continue to perform exceptionally," said Peter Turek, automotive vice president of TransUnion's financial services unit, in a statement.

Turek said he expects auto-loan delinquencies to remain low for the rest of 2012 because rising U.S. demand for new and used vehicles has spurred an increase in lending and leasing.

Still, Turek cautioned that "a slight increase from this record-low level would not be surprising and should not be construed as a negative event, as lenders continue to originate more loans to consumers across all credit risk levels."

Auto delinquency rates dropped in 43 states from the fourth quarter of 2011 to the first quarter of 2012, TransUnion reported. Last quarter, Montana had the lowest loan delinquency rate in the country at 0.15 percent. Mississippi, with a 0.77 percent delinquency rate, was the highest in the nation.

You can reach Joseph Lichterman at jlichterman@crain.com. Related LinksReaders are solely responsible for the content of the comments they post here. Comments are subject to the site's terms and conditions of use and do not necessarily reflect the opinion or approval of Automotive News. Readers whose comments violate the terms of use may have their comments removed or all of their content blocked from viewing by other users without notification.

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TransUnion: Steady delinquency rate through '12

An annual national auto delinquency forecast by risk-management company TransUnion today suggests the ratio of borrowers with loans 60 or more days past due will remain at the current level through the end of next year.

Auto loan delinquencies are expected to decrease in the first two quarters next year before rising back to 0.51 percent at year end to finish 2012 at the same percentage as year end 2011, TransUnion said.

The company said auto loan delinquencies have decreased noticeably since peaking during the recession at 0.86 percent in the fourth quarter of 2008.

"Auto loans have performed quite well since the beginning of 2010, and we expect delinquencies to remain relatively low throughout 2012 as the gradual recovery in the economy will benefit both lenders and consumers," Peter Turek, automotive vice president of the company's financial services unit, said in a statement.

Since the end of 2008, the company said, 60-day auto loan delinquencies have dropped year over year from 0.81 percent in the fourth quarter of 2009 to 0.59 percent in fourth quarter of 2010 and are anticipated to drop to 0.51 percent at the end of 2011.

Of the 21 states expected to see auto delinquencies decrease next year, Michigan, Rhode Island and North Carolina are expected to have the biggest drops, all at about 14 percent.

Among the 29 states expected to have increases in delinquencies, North Dakota, Alaska and Iowa are projected to have the largest percentage gains.

Although North Dakota is expected to have the largest percentage increase in delinquencies, TransUnion said it still expects the state to have the lowest delinquency rate: 0.16 percent.

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