Twenty-two states show increases in 60-day automotive loan delinquencies; Delaware sees largest spike at 9.9 percent


money

SCHAUMBURG, IL--May 22, 2014: Experian Automotive today announced that while at a national level 60-day automotive loan delinquencies fell 1.7 percent, 22 states showed increases. According to the latest State of the Automotive Finance Market report, Delaware showed the sharpest increase, jumping by nearly 10 percent, up from 0.73 percent in Q1 2013. Other states among the top five for increased 60-day delinquencies include:

Montana increased by 8.9 percent (up from 0.35 percent in Q1 2013) Nebraska increased by 7.9 percent (up from 0.45 percent in Q1 2013) Iowa increased by 6.6 percent (up from 0.39 percent in Q1 2013) New Jersey increased by 5.8 percent (up from 0.61 percent in Q1 2013)

Thirty-day auto delinquencies dropped 5 percent, going from 2.36 percent in Q1 2013 to 2.24 percent in Q1 2014. Additionally, only six states showed an increase in 30-day delinquencies:

Alaska increased by 8.9 percent (up from 1.48 percent in Q1 2013) Montana increased by 5.4 percent (up from 1.48 percent in Q1 2013) Kentucky increased by 3.4 percent (up from 2.27 percent in Q1 2013) West Virginia increased by 2.2 percent (up from 2.55 percent in Q1 2013) Indiana increased by 1.7 percent (up from 2.06 percent in Q1 2013) Pennsylvania increased by 0.9 percent (up from 2.04 percent in Q1 2013)

"Consumers overall are doing a better job of paying their auto loans on time. However, it is evident that consumers in some states still are struggling to meet their payment obligations," said Melinda Zabritski, Experian's senior director of automotive credit. "It is important for consumers to keep in mind that paying bills on time is one of the most essential factors when lenders are evaluating who gets the best rates and terms when applying for a future loan. While the subprime auto loan market continued to grow in Q1 and credit-challenged consumers have been able to get financed more easily, a rise in overall delinquencies could cause lenders to tighten their credit standards, ultimately lessening access to credit in the future."

Other findings from the report showed that repossessions were up 36.5 percent overall in Q1 2014, increasing from 0.50 percent in Q1 2013 to 0.68 percent in Q1 2014. However, the increase was driven entirely by finance companies that provide a significant majority of their loans to credit-challenged customers. In Q1 2014, finance companies' repossession rates jumped by 69.1 percent, from 1.78 percent in Q1 2013 to 3.01 percent in Q1 2014.

In other findings:

Total dollar volume for automotive loans was $811.3 billion, the highest since Experian Automotive began publicly tracking loan volumes in 2006 All lender types experienced growth in year-over-year quarterly loan volume, with banks up by $33 billion, credit unions up by $23 billion, finance companies up by $19 billion and captive finance companies up by $9 billion The average charge-off amount for loans gone bad jumped from $7,401 in Q1 2013 to $8,541 in Q1 2014

Home | Buyers Guides By Make | New Car Buyers Guide | Used Car Super Search | Total New Car Costs | New Car and Truck Reviews
Automotive News | TACH-TV | Media Library | Discount Auto Parts

Copyright © 1996-2014 The Auto Channel. Contact Information, Credits, and Terms of Use. These following titles and media identification are Trademarks owned by The Auto Channel, LLC and have been in continuous use since 1987 : The Auto Channel, Auto Channel and TACH all have been in continuous use world wide since 1987, in Print, TV, Radio, Home Video, Newsletters, On-line, and other interactive media; all rights are reserved and infringement will be acted upon with force.

Privacy Statement | Size Does Matter | Media Kit | XML SITE MAP | Affiliates

Send your questions, comments, and suggestions to Editor-in-Chief@theautochannel.com.

Submit Company releases or Product News stories to submit@theautochannel.com.
Place copy in body of email, NO attachments please.

To report errors and other problems with this page, please use this form.

Link to this page: http://www.theautochannel.com/