The number of auto loans that were behind by sixty days or more rose 0.03% from the second quarter to the third. The flip side is that those same rates dropped by 0.14% over the same period of 2010. While the delinquency rate has dropped in eight consecutive quarters, the average auto loan balance is at a historic high of $12,902.
Many financial experts attribute the uptick in the quarter-to-quarter rate as a seasonally expected event. Auto payment delinquencies usually rise in the third quarter when you look at statistics compiled since 1999. Analysts say that traditional uptick is because more loans are written during the second or third quarter, and borrowers sometimes have trouble coming up with their payments in the third or fourth month of a loan.
The number of auto loan delinquencies is lower than those for credit card and mortgage payments, both of which say slight rises, also showing seasonal adjustments. Experts expect an increase in both good and bad credit auto loan originations as the economy recovers, but expect the low number of delinquencies to also continue.