Auto loan delinquencies hold steady while debt increases
Aug. 23, 2013 – While auto loan debt has risen over the years, the national auto loan delinquency rate – the percentage of accounts 60 or more days past due – remains relatively flat year over year.
According to TransUnion’s Industry Insights Report, the national auto loan delinquency rate moved from 0.79 percent in the second quarter of 2012 to 0.8 percent in the second quarter of 2013. On a quarter-over-quarter basis, the auto loan delinquency rate experienced an 8-basis point drop from 0.88 percent in the first quarter of 2013.
In a recent NAFCU Macro Data Flash report on consumer credit, non-revolving credit, which is primarily made up of motor vehicle and education loans, increased at an annual rate of 10 percent. NAFCU Senior Economist Curt Long said that for credit unions, specifically, loan growth has been an ongoing trend in the used vehicle market, “but is a new phenomenon in the new-vehicle segment.” In March, new vehicle loan growth hit 10.8 percent year over year for credit unions.
NCUA has now added new- and used-vehicle delinquencies to the June 2013 call report. NAFCU economists will now be able to track these numbers from a credit union level going forward.
NAFCU Macro Data Flash report
TransUnion Industry Insights Report