Auto loan debt rose for 11th straight quarter; delinquencies low
Auto loan debt per borrower rose for the 11th straight quarter, increasing 4.4 percent from $16,060 in fourth quarter 2012 to $16,769 in fourth quarter 2013, reports TransUnion.
Additionally, the auto loan delinquency rate increased to 1.14 percent in the fourth quarter of 2013, but thats still below the fourth quarter average of 1.29 percent for the past six years.
Despite the uptick in delinquencies, they should remain fairly low in the near future, said Pete Turek, vice president of automotive in TransUnions financial services business unit. First, while auto loan originations are increasing at a rapid pace, the percentage of nonprime accounts remains low. Though the share of nonprime, higher risk loan originations remains below pre-recession levels, it will likely keep rising because of the growth of competitors in the segment, said Turek.Download Bulletin PDF