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TransUnion: National Auto Loan Delinquency Rate Remains Flat While Debt Grows

by Ken Anderson | Aug 20, 2013
The national auto loan delinquency rate (the percentage of accounts 60 or more days past due) remained relatively flat year over year moving from 0.79 percent in Q2 2012 to 0.80 percent in Q2 2013, according to TransUnion.

The national auto loan delinquency rate (the percentage of accounts 60 or more days past due) remained relatively flat year over year moving from 0.79 percent in Q2 2012 to 0.80 percent in Q2 2013, according to TransUnion. On a quarter-over-quarter basis, the auto loan delinquency rate experienced an 8-basis point drop from 0.88 percent in Q1 2013.

Auto loan balances continue to increase, jumping more than 4 percent between Q2 2012 ($12,875) and Q2 2013 ($13,435). Every state except for Michigan experienced an increase in average auto loan balances during this timeframe.

The data provided are gathered from TransUnion's proprietary Industry Insights Report, a quarterly overview summarizing data, trends and perspectives on the U.S. consumer lending industry. The report is based on anonymized credit data from virtually every credit-active consumer in the United States.

"Our second quarter data are favorable for the auto loan market, as delinquencies remained largely unchanged while auto loan debt rose once again in the last year," said Peter Turek, vice president of automotive for TransUnion. "It's encouraging to see consumers take on more auto debt while delinquencies remain low. Consumers clearly are more confident in managing additional debt."

While subprime borrower debt increased more than 7 percent in the last year, delinquency levels for this segment remained about the same, moving from 4.94 percent in Q2 2012 to 5.02 percent in Q2 2013. As a percentage of borrowers, the subprime group did not change from last year, still constituting 14.9 percent of all new accounts.