Auto loan delinquencies will remain at near record-low levels in 2013 as the overall national economy should continue to heal, according to TransUnion’s annual national auto loan delinquency forecast. These delinquencies are defined as being loans that are 60 or more days past due.
Specifically, the national auto loan delinquency rate has decreased more than 50% from its high of 0.86% in 4Q08. TransUnion believes that this rate should slightly increase to around 0.37% from 0.36% in the same point in 2012. Despite these good numbers, the same report projects that the car loan debt per borrower will increase next year going from $13,689 to $14,133 in Q413.
Talking about the performance in the auto finance market, Peter Turek, automotive vice president in TransUnion’s financial services business unit, said in a press release, “Macroeconomic factors such as the improving unemployment rate, median household income, and housing prices are some of the primary drivers that lead us to a favorable forecast.”