This recent trend shows that auto owners, in the U.S. specifically, are bearing even greater balances on their loans, but still making their monthly payments on time – indicating that buyers are not only keeping up with their car payments, but also possibly seeing a positive trend toward increased financial stability.
The Auto-loan debt per borrower increased 4.4 percent to $16,769 in the final quarter of 2013 from a year earlier, credit-reporting agency TransUnion said. Even so, the U.S. auto-loan delinquency rate was 1.14 percent, below the 1.3 percent average for every previous fourth quarter since 2007.
“It’s great to see this change in the auto loan industry, because it sends a positive note that more families could be seeing increased financial stability” said CAL’s Vice President, Neil Eneix.
Pete Turek, vice president of automotive in TransUnion’s financial services business unit. mentioned that auto loan delinquencies should remain fairly low for a while as auto loan originations are rapidly increasing while the percentage of accounts that are non-prime remains low.
What helped drive new vehicle sales up 8% last year? Credit’s increased availability, stable fuel prices, and low interest rates all helped move things forward.
It appears that informed shoppers are now taking advantage of good rates, financial advice, and the increased opportunities that are available.