SOURCE: TransUnion


May 23, 2012 06:00 ET

TransUnion: National Auto Loan Delinquencies Hit Lowest Level on Record

CHICAGO, IL--(Marketwire - May 23, 2012) - The national auto loan delinquency rate (the rate of borrowers 60 or more days past due) reached its lowest level since TransUnion began tracking the data in 1999. Auto loan delinquency rates in Q1 2012 dropped to 0.36%, down nearly 27% from Q1 2011 (0.49%). On a quarterly basis, auto loan delinquencies declined almost 22% from 0.46% in Q4 2011. This information is reported by TransUnion and is part of its ongoing series of quarterly analyses of credit-active U.S. consumers and how they are managing credit related to mortgages, credit cards and auto loans.

"Auto loan delinquencies continue to perform exceptionally. This can be attributed primarily to growing demand for both new and used vehicles and higher used vehicle values, which equates to an increase in equity for consumers," said Peter Turek, automotive vice president in TransUnion's financial services business unit. "We are seeing increases in both lending and leasing across the board, along with a higher number of loans originated in the non-prime risk segments."

Between Q4 2011 and Q1 2012, 43 states experienced declines in their auto delinquency rates. On a more granular level, only 34% of metropolitan areas saw increases in their auto delinquency rates in Q1 2012. This is down from the prior period where 44% of the MSAs experienced increases.

"We anticipate national auto loan delinquency rates to remain relatively low for the remainder of the year, rising and decreasing with traditional seasonal patterns," added Turek. "However, a slight increase from this record-low level would not be surprising and should not be construed as a negative event, as lenders continue to originate more loans to consumers across all credit risk levels."

TransUnion's forecast is based on various economic assumptions, such as unemployment rates, consumer sentiment, disposable income, and interest rates. The forecast changes as the economy deviates from a conservative economic forecast or if there are unanticipated shocks to the economy affecting recovery.

Q1 2012 Bank Auto Statistics - Delinquency Rates

Quarter over Quarter Q4 2011 Q1 2012 Pct. Change
USA 0.46 % 0.36 % (21.74 %)
Year over year Q1 2011 Q1 2012 Pct. Change
USA 0.49 % 0.36 % (26.53 %)
Highest Bank Auto Delinquency States Q1 2012
Mississippi 0.77 %
Louisiana 0.69 %
Tennessee 0.56 %
Lowest Bank Auto Delinquency States Q1 2012
Montana 0.15 %
New Hampshire 0.18 %
Minnesota 0.19 %
Top 3 Year-over-Year Increases Q1 2011 Q1 2012 Pct. Change
South Dakota 0.33 % 0.40 % 21.21 %
West Virginia 0.43 % 0.49 % 13.95 %
Wyoming 0.27 % 0.30 % 11.11 %
Top 3 Year-over-Year Declines Q1 2011 Q1 2012 Pct. Change
Rhode Island 0.43 % 0.20 % (53.49 %)
North Carolina 0.51 % 0.24 % (52.94 %)
Alaska 0.61 % 0.29 % (52.46 %)

Q1 2012 Bank Auto Statistics - Bank Auto Debt Per Borrower

Quarter over Quarter Q4 2011 Q1 2012 Pct. Change
USA $ 13,045 $ 13,272 1.74 %
Year over Year Q1 2011 Q1 2012 Pct. Change
USA $ 12,585 $ 13,272 5.45 %
Highest Bank Auto Debt Per Borrower Q1 2012
Wyoming $ 14,961
Texas $ 14,935
Alabama $ 14,808
Lowest Bank Auto Debt Per Borrower Q1 2012
Nebraska $ 11,406
Ohio $ 11,780
Maine $ 11,936
Top 3 Year-over-Year Increases Q1 2011 Q1 2012 Pct. Change
Washington $ 13,026 $ 14,236 9.28 %
Oregon $ 11,853 $ 12,890 8.75 %
Alabama $ 13,634 $ 14,808 8.61 %

*No states experienced year-over-year declines

Supporting Resources/Links
TransUnion Trend Data Interactive U.S. Map
TransUnion 4Q11 Auto Statistics
TransUnion Payment Hierarchy Study
TransUnion Life After Foreclosure Study
TransUnion on Twitter

TransUnion's Trend Data database
The report is part of an ongoing series of quarterly consumer lending sector analyses focusing on credit card, bank auto loan and bank auto data available on TransUnion's Web site. Information for this analysis is culled from TransUnion's Trend Data and the anonymous credit files of approximately 10 percent of credit-active U.S. consumers, providing a real-life perspective on how they are managing their credit health.

TransUnion's Trend Data, a one-of-a-kind database consisting of 27 million anonymous consumer records randomly sampled every quarter from TransUnion's national consumer credit database. Each record contains more than 200 credit variables that illustrate consumer credit usage and performance. Since 1992, TransUnion has been aggregating this information at the county, Metropolitan Statistical Area (MSA), state and national levels. For the purpose of this analysis, the term "credit card" refers to those issued by banks.

About TransUnion
As a global leader in information and risk management, TransUnion creates advantages for millions of people around the world by gathering, analyzing and delivering information. For businesses, TransUnion helps improve efficiency, manage risk, reduce costs and increase revenue by delivering high quality data, and integrating advanced analytics and enhanced decision-making capabilities. For consumers, TransUnion provides the tools, resources and education to help manage their credit health and achieve their financial goals. Through these and other efforts, TransUnion is working to build stronger economies worldwide. Founded in 1968 and headquartered in Chicago, TransUnion reaches businesses and consumers in 32 countries around the world.

Contact Information

  • Contact
    Dave Blumberg
    E-mail Email Contact
    Telephone 312 972 6646


Keyword Cloud

View Website