More People Paying their Car Loans – Car Pro News

More auto buyers are making their payments on time.
For the second consecutive quarter, auto loans that are at least 60 days past due are down. They’re at their lowest levels since credit bureau TransUnion started keeping track in 1999.
The percentage of buyers more than two months behind dropped to 0.33% in the second quarter, from 0.36% in the first quarter. Compared with the same quarter a year ago, auto loan delinquencies dropped by 25% from 0.44%, according to TransUnion.
The declines took place in 37 states when compared year over year.
“Consumers now value their auto loans more than their credit cards and mortgages,” said Peter Turek, automotive vice president in TransUnion’s financial services business unit, in a statement. “This is partly due to the need for transportation to get to work or to seek employment.” Plus, he says consumers with car loans have more equity in their vehicles than in the past and don’t want to risk losing a vehicle to repossession.
As a result of the healthier credit climate, lenders are offering more subprime loans to buyers with marginal credit. The number of subprime loans increased 9% in the second quarter compared with the same period a year ago. As more risky loans are made, default rates could rise.
“With the increase in non-prime borrowing, we do anticipate that auto loan delinquencies will begin to increase,” said Turek.


Leave a reply

Your email address will not be published. Required fields are marked *


Copyright ©2018 Car Pro. All rights reserved.                                                      Team Access          Privacy          Terms of Service          Technical Support

Log in with your credentials


Forgot your details?

Create Account