According to TransUnion.com’s quarterly analysis of auto lending industry trends, the national 60-day auto loan delinquency rate increased in the third quarter compared to the second quarter, from 0.73% to 0.81%. The national car loan delinquency rate still stands at less than one percent overall.
TransUnion.com’s data comes from approximately 27 million anonymous, randomly sampled, individual credit files, representing about 10% of credit-active U.S. consumers. The rates measure how many consumers are 60 days or more past due on their auto loans.
The year-over-year car loan delinquency rate at the national level increased by 1.25% in the third quarter. The states with the highest auto loan delinquency rates were Mississippi (1.53%) and California (1.33%). The states with the lowest delinquencies were the District of Columbia (0.26%) and North Dakota (0.35%).
The average amount of auto debt nationally decreased in the third quarter from $12,560 to $12,542.
“The rise in the third quarter 60-day auto delinquency rate is more indicative of a cyclical pattern since the current automotive lending environment has remained consistent in its approach over the last 12 months,” said Peter Turek, automotive vice president in TransUnion’s financial services group. “On a state-level basis, seven states experienced a drop in their quarter-to-quarter delinquency rates while 22 showed a drop on a year-over-year basis. The drop in delinquency is an indicator that some states could emerge from the recession sooner than others.”
“As in recent quarters, both the availability of funding in the market, consumer demand for auto financing and tighter lending standards have contributed to a significant decrease in the number of auto loans in the market, resulting in upward pressure on delinquency rates. As well, the drop in average auto loan debt, although marginal at the national level, reflects the maturation of existing loans and the corresponding decreases in new auto loan originations in the third quarter.”