Auto Loans Over 60 Days Accumulating

The count for people who have bought cars on financing are bound to become a problem. Truth of the matter is, payments over 60 days are rising as reported by Experian Automotive. Experian Automotive presented its latest analysis of automotive lending trends, providing a comprehensive view of the market from fourth quarter 2007 through fourth quarter 2008.

Currently, 1.04 percent of all automotive loans are 60 days past due, compared with 0.89 percent in the fourth quarter of 2007. Thirty-day delinquencies rose 9.87 percent over the same period, to 3.06 percent in fourth quarter 2008 from 2.78 percent in fourth quarter 2007. Combined, 30- and 60-day delinquencies accounted for nearly $29 billion in at-risk loans.

According to Experian’s Scorex PLUS(SM), the average loan score for a new vehicle loan was 765 in the fourth quarter of 2008, 12 points higher than the average credit score for a new vehicle loan in the fourth quarter of 2007. Although the average loan score for new loan originations rose – largely due to more stringent loan criteria from lenders – overall consumer credit worsened. The percentage of all outstanding loans to prime customers (680 credit score and above) fell by nearly 1.5 percentage points, from 57.97 percent in the fourth quarter of 2007 to 56.5 percent in the fourth quarter of 2008.

(Source) Press