For the second consecutive quarter, the national auto loan delinquency rate (the ratio of borrowers 60 or more days past due) hit its lowest level since TransUnion began tracking the data in 1999. Auto loan delinquency rates in Q2 2012 dropped to 0.33 percent, down from 0.36 percent Q1 2012.
On a year-over-year basis, auto loan delinquencies declined 25 percent from 0.44 percent in Q2 2011. This information is reported by TransUnion and is part of its ongoing series of quarterly analyses of credit-active U.S. consumers and how they are managing credit related to mortgages, credit cards and auto loans.
In addition to increased demand in new and used autos, bank auto debt per borrower has risen nearly 6 percent from $12,689 in Q2 2011 to $13,427 in Q2 2012. Despite growing bank auto debt, the majority of states and cities are experiencing declines in their auto loan delinquency rates.
Between Q1 2012 and Q2 2012, 37 states experienced declines in their auto delinquency rates. On a more granular level, 58 percent of metropolitan areas saw decreases in their auto delinquency rates in Q2 2012. This is down from the prior period where 66 percent of MSAs experienced decreases.
TransUnion’s forecast is based on various economic assumptions, such as unemployment rates, consumer sentiment, disposable income, and interest rates. The forecast changes as the economy deviates from a conservative forecast or if there are unanticipated shocks to the economy affecting recovery.