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.