Auto Loan Delinquencies Increased in May, But Are Still Less Than 1%

Auto loan delinquencies jumped 22% in May compared to April, according to Fitch Ratings, but are still less than 1% overall.

Dow Jones Newswires reports that prime-rated auto loans at least 60 days delinquent were 0.72% in May, up 26% from a year earlier, paralleling the increase in consumer debt delinquencies and the rising unemployment rate.

This increase in prime-rated auto loan delinquencies is down from a record of 0.87% early this year though. Basically, prime-rated auto loans are loans given to consumers with the best credit. Auto loans for consumers with sub-prime credit usually have higher delinquency rates.

Fitch Ratings also said that used-vehicle values are up 8% since January, due to increasing demand and shrinking new supply.