Auto Loan Delinquencies Increased in May, But Are Still Less Than 1%
By Liz Opsitnik Thursday, Jun 25 2009 15:28
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.
Comment By: George on Fri, Jun 26 2009 at 10:49 AM
When are people going to start getting auto loans that they can afford to pay? Maybe if obama stops bailing out deadbeats on wall street the morons on main street will stop spending more money than they make. While these deadbeats are defaulting on more auto loans and pushing this country into the toilet, Obama is stealing more freedoms from real smart americans!
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