Late auto loan payments higher in first quarter
As lenders, especially banks, are making credit more available to auto buyers, the rate of late payments rose slightly in the first quarter, to 0.88 percent for payments 60 days late or more. Thats up slightly from a year ago, but down from 1 percent in fourth-quarter 2012. Figures are from TransUnion, as reported by the Associated Press.
Subprime borrowing is up, too, and so are subprime delinquencies, to 5.5 percent from 5.09 percent a year ago. Subprime borrowers made up 15 percent of auto loans in the first quarter.
In concert with the rise in auto sales, the overall volume of auto loans rose 6.1 percent in the first quarter from a year earlier. The average loan balance was up 4 percent, to $13,260.Download Bulletin PDF