The percentage of auto loans past due 60 days or more rose 8.9 percent in the fourth quarter of 2008, compared with the prior-year period, according to credit reporting agency TransUnion. The numbers point to auto delinquencies shooting to their highest point in a decade by the end of the year.
The rate rose to 0.86 percent for the three months ended Dec. 31, compared with 0.79 percent in the 2007 fourth quarter.
Auto-loan delinquencies tend to be cyclical, with the fourth quarter typically showing the fewest problematic payments. But the recession appears to be changing those patterns.
“Certainly the overall economy, the weak labor markets, disposable income, are all affecting auto debts as well,” said Peter Turek, a vice president with TransUnion.
Delinquencies were highest in Mississippi, at 1.62 percent, followed by California, at 1.46 percent, and Louisiana, at 1.37 percent. The states with the lowest rates were Alaska, North Dakota and Wyoming. In all, 10 states are above the national average and 30 are below it.
Turek is forecasting the rate of auto delinquencies will rise to 1.13 percent nationally by the end of 2009, which would be the highest in 10 years.
Since the recession began in December 2007, auto loan delinquencies have jumped 25 percent, compared with a 10 percent increase in the 2001 recession, Turek said.
Topics Trends Auto Pricing Trends
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