Auto Loan Defaults See Significant Drop

turek_peter2a

USA Today - August 22, 2012

For the sec­ond con­sec­u­tive quar­ter, auto loans that are at least 60 days past due are down as more auto buy­ers are mak­ing their pay­ments on time. Con­sumers now value their auto loans, says Peter Turek of Tran­sUnion.

They also have more to lose by default­ing, says Turek.

The per­cent of buy­ers more than two months due dropped to 0.33% in the sec­ond quar­ter, down from 0.36% in the first quar­ter. Com­pared to the same quar­ter a year ago, auto loan delin­quen­cies dropped by 25% from 0.44%, accord­ing to Tran­sUnion.

Plus, con­sumers with car loans have more equity in their vehi­cle than in the past and don’t want to risk los­ing the vehi­cle to a repossession.

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