TU Report Shows Bad Credit Auto Loan Delinquencies Down

TransUnion has released its fourth quarter 2011 auto delinquency report showing a drop in delinquencies which is positive news for people hoping to finance a bad credit car
TU Report Shows Bad Credit Auto Loan Delinquencies Down
Bad credit

It now looks like it might be a real good time to finance a car with bad credit auto loans.

We think this is true because for the last decade here at Auto Credit Express we’ve been helping credit-challenged applicants find dealers that specialize in bad credit car sales. Our website can also help with questions regarding horrible credit auto loans and repossession as well as today’s topic – the latest report from TransUnion on automotive lending delinquencies.

TransUnion fourth quarter lending report

TransUnion has just released its latest report on automotive lending –dealing with auto loans in the fourth quarter of 2011. These reports are based on a random sampling from database consisting of 27 million consumer records that are randomly sampled every quarter. Therefore we can assume the results are fairly accurate.

According to TransUnion, the national auto loan delinquency rate (borrowers 60 or more days past due) dropped for the ninth consecutive quarter from 0.59 percent in the fourth quarter of 2010 to 0.46 percent in the fourth quarter of 2011 and remained “essentially flat” compared to the 0.47 percent of the third quarter of 2011.

TU analysis

“Normally there is a seasonal upswing in auto delinquency rates in the fourth quarter. Except in 2009 where there was no change and in 2003 where there was about a 4% drop, auto delinquency rates have shown upward movements between third and fourth quarters averaging in excess of 5%,” said Peter Turek, automotive vice president in TransUnion’s financial services business unit. “Ending the year flat is particularly interesting, because the number of new auto loans coming onto the books has consistently increased since the end of the recession, a primary driver of which has been an expansion in lending to consumers in the subprime market.”

The Bottom Line

As we see it customers applying for no credit auto loans now have a better chance that ever for an approval. That being said, here is our advice to consumers seeking a problem credit auto loan:

•    Know your credit scores as well as the information in your credit reports
•    Plan on contributing to the loan at least 10 percent down in cash or actual trade equity
•    Keep the loan term as short as possible
•    Buy a compact or midsize vehicle and put off considering anything else until after you’ve reestablished your credit.

Finding the right dealer

Wherever you are in the credit repair process, you should know that Auto Credit Express specializes in matching applicants with bad auto credit to dealers that can offer them their best chance at getting approved for a problem credit auto loan.

So if you’re ready to reestablish your car credit, you can start now by filling out our online car loans bad credit application.

Posted on February 28, 2012 by in Auto Loans, Bad Credit
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