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TransUnion Reports a Rise on Quarterly and Yearly Basis for Auto Loan Delinquencies

The third quarter 2013 auto loan delinquency rate has officially been released by TransUnion, which shows an increase in balances and number of financing opportunities to subprime borrowers.

TransUnion Reports a Rise on Quarterly and Yearly Basis for Auto Loan Delinquencies

Our experience

According to the most recent third quarter 2013 report, both the percentage and balance of auto loan delinquencies have raised on quarterly and yearly basis; however, more car buyers with poor credit are being offered auto loan options in this quarter.

At Auto Credit Express we feel the need to share this news as a helpful resource to those who are looking to finance a vehicle with credit problems. Over the last twenty years, this company has been dedicated to helping people with less than perfect credit scores acquire the best car loan options from top-of-the-line auto dealerships in their area.

Providing this type of service only reinforces our belief in how important it is to inform the public about how the auto finance landscape currently looks – which is exactly what the quarterly TransUnion reports are capable of doing at this time.

TransUnion third quarter report

The recent news coming out of TransUnion’s report indicates that the auto loan delinquency rate during the third quarter of 2013 has increased by a noticeable amount. In fact, the report states that the national delinquency rate, which is the ratio of borrowers who are 60 or more days late on their car loan, “increased to 1.04% in Q3 2013, up on both a quarterly and yearly basis (from 0.87% in Q2 2013 and 1.00% in Q3 2012).” This could be a result of only 15 states experiencing a decline, while the largest increases could be found in the following states:  

  • Alaska
  • Michigan
  • West Virginia

On the other hand, the states that have been experiencing the greatest decline included:

  • Oregon
  • South Dakota
  • California

This upward trend in percentage was also evident in the auto loan balances as they, “increased for the 10th straight quarter, moving up 4.7% from $15,943 in Q3 2012 to $16,685 in Q3 2013.” Also, the trend of Michigan being the only state to not see an increase in average auto loan balance continued into the third quarter 2013.

Nevertheless, despite this increase in delinquencies on the quarterly and yearly basis there is still a positive silver lining. The report mentions that, “The delinquency rate, though, is well below the Q3 average of 1.22% observed between 2007 and 2013.”

Also, vice president of automotive, Pete Turek, claims that, “The auto loan story continues to be a positive one with relatively low delinquency rates and increased auto loan balances.”

Subprime auto financing rising

Another piece of information that came out of the TransUnion report will prove to be very useful to those with a lower VantageScore® below 640.

They reported that the delinquency rate for subprime auto financing, “increased from 5.30% in Q3 2012 to 5.60% in Q3 2013.” This may seem like a reason to be concerned, but the rise in the rates manages to still stay within levels that are similar to previous third quarters. In fact, Turek suggests that the, “Auto loan originations also are increasing as the demand for both new and used autos remains strong. While subprime delinquency levels are rising, they still remain at manageable levels”

Therefore, this is still a great time to pursue a great auto loan deal if you have past credit problems.

The Bottom Line

This latest report highlights the fact that delinquencies rates have increased; however, people with bad credit histories still have the best chance of loan approval at this current junction.

The even better news is that you can use Auto Credit Express as your premier finance network to help you find the perfect car loan situation. We have the tools, skills, and time to get you approved for financing even with damaged credit.

Don’t continue to endure your credit problems — and allow us to help you reestablish your credit in a matter of minutes by applying today using our online loan application.

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