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Auto Loan Delinquencies Stable – Even as Loan Amounts Rise

While vehicle affordability and delinquent loan volume continue to make headlines, new findings from Experian…

  • March 18, 2019

While vehicle affordability and delinquent loan volume continue to make headlines, new findings from Experian show these trends may not be as dire as they seem.

In fact, the percentage of 30-day delinquent loans improved year-over-year, while the percentage of 60-day delinquencies saw only a minimal uptick over the same time period.

The report – covering the last three months of 2018 — shows 30-day delinquencies dropped to 2.32 percent from 2.36 percent a year ago, while 60-day delinquencies increased to 0.78 percent from 0.76 percent the previous year.

The percentage of delinquent loans continues to remain stable even as more and more consumers rely on automotive financing.

In Q4 2018, 85.1 percent of all new vehicle purchases were financed compared to 81.4 percent in Q4 2010.

Much of the conversation surrounding delinquency rates is driven by questions of vehicle affordability, specifically the average loan amounts and monthly payments.

The average loan amount for a new vehicle was $31,722 (up $623 from the previous year), while the average loan amount for a used vehicle surpassed $20,000 (up $488 from the previous year). The average monthly payment for a new vehicle was $545 (up $30 from the previous year) and the average for a used vehicle was $387 (up $16 from the previous year).

With these heady numbers in mind, head on over to your credit union before signing on to a vehicle loan. CUs have some of the best rates around, since they are not-for-profit, member-owned organizations. They put you in charge – and that’s especially important when making a big-ticket purchase.

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