TransUnion: Delinquencies Decline for Seventh Consecutive Quarter, Auto Debt Increases Marginally

National auto delinquency rates have declined for the seventh quarter in a row and also remain at historically low levels, according to TransUnion. The rate of borrowers with 60 or more days past due continues to fall, declining from 0.49 percent in the first quarter to 0.44 percent at the end of the second quarter. However, national auto debt has risen slightly from the first quarter of the year, marking a 0.83 percent increase from $12,585 in the first quarter to $12,689 in the second quarter. Auto debt has also risen year-over-year, increasing 0.37 percent from the second quarter of 2010 to the second quarter of 2011. "Although auto delinquencies were expected to fall since last quarter in part due to seasonal influences, the 2Q 2011 TransUnion data released today shows a moderate deceleration on a year-over-year basis since the third quarter of 2010,” the company stated. The auto delinquency rate fell just over 16 percent from the second quarter of 2010. "Historically, first and second quarter auto delinquencies tend to be lower than those experienced in the second half of the year, all other things remaining equal," said vice president Peter Turek. "However, over the last seven quarters -- on a year over year basis -- we have seen delinquencies trend downward as consumers continue to pay down debt."

SubPrime Auto Finance News (08/23/2011)