Auto Delinquency Continues to Rise

The number of auto loans that are 60 days or more overdue rose 8.9% in the fourth quarter of 2008, according to credit reporting agency TransUnion.

This trend has not yet showed any sign of slowing down. Delinquent auto loans have leapt 25% since the recession began in 2007. Compare that with the 10% increase during the 2001 recession, and you get an idea of how much larger the problem of delinquent loans is this time around.

States with the highest delinquency rates were Mississippi, at 1.62%; California, at 1.46%; and Louisiana, at 1.37%. The lowest rates belonged to low-populous states Alaska, at .19%; North Dakota, at .34%; and Wyoming, at .41%.

TransUnion predicts that delinquent loans have not yet hit their peak, and expects them to increase 15% more before the country begins to recover.

Auto Delinquency Rates Rise Nearly 9 Percent (Detroit News)