Auto Loan Delinquencies Creep Up; Average Debt Down

Car loanAuto loan delinquencies edged upward for third quarter 2009, while the average auto debt slipped to $12,542, according to TransUnion’s analysis.
The auto delinquency rate – auto loan borrowers 60 or more days past due – rose between the second and third quarters of this year, from 0.73 percent to 0.81 percent. The year-over-year delinquency rate was up by 1.25 percent in the third quarter, the credit reporting bureau said.
The rates were highest in Mississippi and California at 1.53 percent and 1.33 percent, respectively. The lowest auto loan delinquency rates were in the District of Columbia (0.26 percent), North Dakota (0.35 percent) and South Dakota (0.37 percent).
The average auto debt nationally continued to edge downward in the third quarter of this year from $12,560 to $12,542. Compared to third quarter last year, auto debt fell by 2.5 percent. The state with the largest auto debt burden was Nevada at $14,721 per borrower, followed by Texas at $14,425.
“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,” said Peter Turek, automotive vice president in TransUnion’s financial services group.
TransUnion, one of the three credit bureaus, reviews credit delinquencies from a database of 27 million anonymous consumer records randomly sampled every quarter from the company’s consumer credit database.
Credit card delinquency rate – bankcard borrowers 90 days or more delinquent on one or more of their credit cards – dropped to 1.10 percent in the third quarter of 2009, down 5.98 percent over the previous quarter, TransUnion had reported. Year over year, credit card delinquencies remained essentially flat from 1.09 percent in the third quarter of 2008.
The average credit card borrower debt – the aggregate balance on all bank-issued credit cards for an individual bankcard borrower – drifted downward nationally 1.87 percent to $5,612 from the previous quarter’s $5,719, and down 1.71 percent compared to the third quarter of 2008 ($5,710), TransUnion reported.
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