Auto Loan Delinquencies Expected to Rise 7%

The rate of auto loan delinquencies in the U.S. will grow by 7% in 2010, according to TransUnion, one of the country’s largest credit rating agencies.

Driven by an unemployment rate of roughly 10%, the rise in the delinquency rate will mark the fifth straight year the rate has risen or stayed the same. Chicago-based TransUnion considers an auto loan delinquent if the borrower is more than 60 days past due on a payment.

The national average is 0.81%, which is relatively low compared with delinquencies on credit cards and mortgages, which stand at 1.10% and 6.25%, respectively.

The biggest hits in auto loan delinquencies will likely be found in the Midwest and Southeast. California is the only state expected to show an improvement in its auto delinquency rate.

TransUnion: Auto Loan Delinquencies to Grow 7% (Detroit Free Press)

Comments

This I can understand, but then, you stop paying for your car and it gets re-posesed. I have a car lease and I make sure to pay that. It is my only mode of transportation. If I lose my job, i will probably stop paying my credit cards, move in with my parents , but do all I can to have my car.

Im sure the cash for clunkers faking people into thinking they can afford car payments from thier "old" cars will cause this number to increase quickly...

how did cfc "fake" people into thinking they can afford a new car? All it did was give them a discount.

Broq

Really Broq? You can't figure it out for yourself?

As the interest rate is increasing
less people will go for that and
it will directly affect the car
dealers.

it's really good.what abt intrest rates

Nagarajesh

Pay added attention to the repayment terms and monthly installments scheme. The installment should fit within your budget or you might find yourself in a debt trap. Beware of loan sharks. Don't make a hasty decision, as your automobile will be repossessed if you don't keep up with repayments.