National Auto Loan Delinquency Rate Remains Flat While Debt Grows

transunionCHICAGO, IL–(Marketwired – Aug 20, 2013) – The national auto loan delinquency rate (the percentage of accounts 60 or more days past due) remained relatively flat year over year moving from 0.79% in Q2 2012 to 0.80% in Q2 2013. On a quarter-over-quarter basis, the auto loan delinquency rate experienced an 8-basis point drop from 0.88% in Q1 2013.

Auto loan balances continue to increase, jumping more than 4% between Q2 2012 ($12,875) and Q2 2013 ($13,435). Every state except for Michigan experienced an increase in average auto loan balances during this timeframe.

The data provided are gathered from TransUnion’s proprietary Industry Insights Report, a quarterly overview summarizing data, trends and perspectives on the U.S. consumer lending industry. The report is based on anonymized credit data from virtually every credit-active consumer in the United States.

“Our second quarter data are favorable for the auto loan market, as delinquencies remained largely unchanged while auto loan debt rose once again in the last year,” said Peter Turek, vice president of automotive for TransUnion. “It’s encouraging to see consumers take on more auto debt while delinquencies remain low. Consumers clearly are more confident in managing additional debt.”

While subprime borrower debt increased more than 7% in the last year, delinquency levels for this segment remained about the same, moving from 4.94% in Q2 2012 to 5.02% in Q2 2013. As a percentage of borrowers, the subprime group did not change from last year, still constituting 14.9% of all new accounts.

 

Total   Account Volume – Percentage of Subprime Borrowers

Q2   2013

Q2   2012

Q2   2011

Q2   2010

Q2   2009

Q2   2008

14.9%

14.9%

15.7%

17.8%

19.8%

19.9%

           

“This is a positive sign since increased balances for the subprime group indicate that they are receiving new loans. The fact that the increase in delinquencies is only a minor one is especially important, as we often find that borrowers who have problems making payments do so within the first year of a loan,” added Turek.

TransUnion’s Industry Insights Report also showed a continued increase in total auto account volumes, with a 4% rise observed in the last year.

 

Total   Account Volume

Q2   2013

Q2   2012

Q2   2011

Q2   2010

Q2   2009

58.23mm

55.98mm

53.11mm

53.29mm

56.94mm

         

“As we’ve observed in recent quarters, total auto account volume continues to increase,” said Turek. “We expect to see volumes rise in line with overall auto sales and other demand drivers, like replacement of older vehicles and improving employment numbers.”

Q2 2013 Auto Loan Statistics – 60 Days+ Delinquency Rates

       
Quarter over Quarter

Q1   2013

Q2   2013

Pct.   Change

USA

0.88%

0.80%

(9.6%)

       

 

Year over year

Q2   2012

Q2   2013

Pct.   Change

USA

0.79%

0.80%

0.7%

       

 

Highest Auto Loan Delinquency States

Q2   2013

Oklahoma

1,53%

Mississippi

1.46%

Louisiana

1.35%

Alabama

1.27%

   

 

Lowest Auto Loan Delinquency States

Q2   2013

North Dakota

0.43%

Minnesota

0.49%

Vermont

0.49%

Washington

0.52%

   

 

Top 3 Year-over-Year Increases

Q2   2012

Q2   2013

Pct.   Change

Wyoming

0.59%

0.68%

15.3%

Alaska

0.49%

0.55%

12.2%

Michigan

0.75%

0.84%

12.0%

 

Top 3 Year-over-Year Declines

Q2   2012

Q2   2013

Pct.   Change

Vermont

0.57%

0.49%

(14.0%)

South Dakota

0.72%

0.62%

(13.9%)

Oregon

0.63%

0.55%

(12.7%)

 

Q2 2013 Auto Loan Statistics – Average Account Balance

Quarter over Quarter

Q1   2013

Q2   2013

Pct.   Change

USA

$13,260

$13,435

1.3%

 

 

Year over year

Q2   2012

Q2   2013

Pct.   Change

USA

$12,875

$13,435

4.3%

       

 

Highest Auto Loan Balance States

Q2   2013

Texas

$15,978

Alaska

$15,823

Louisiana

$15,708

Wyoming

$15,522

   

 

Lowest Auto Loan Balance States

Q2   2013

Michigan

$10,992

Rhode Island

$11,552

Maine

$11,612

Wisconsin

$11,635

   

 

       
Top 3 Year-over-Year Increases

Q2   2012

Q2   2013

Pct.   Change

Louisiana

$14,657

$15,708

7.2%

New Mexico

$13,844

$14,835

7.2%

Oklahoma

$13,731

$14,697

7.0%

 

Top 3 Year-over-Year Declines

Q2   2012

Q2   2013

Pct.   Change

Michigan

$11,078

$10,922

(0.8%)

 

 

       

*Michigan was the only state with a yearly decline.

About TransUnion
As a global leader in credit and information 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 comprehensive data and advanced analytics and decisioning. 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 33 countries around the world on five continents. www.transunion.com/business

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