You're more likely to drive a new car out of dealer now than you were a year ago (Photo : Flickr)
Experian, a credit information agency, announced last week that lending organizations are reporting fewer delinquent payments, and that car shoppers are having an easier time financing new cars.
The agency reports that 30-day delinquency dropped to 2.52 percent in the second quarter, from 2.59 percent during the same period last year. For 60-day delinquency, the drop was to 0.58 percent from 0.60 percent. Car repossessions dropped to 0.43 percent from 0.59 percent, a 27.9-percent reduction.
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"Consumers continue to do an excellent job of paying back their vehicle loans in a timely fashion, and that's good news for everyone in the industry," Melinda Zabritski, Experian Automotive's director of automotive lending, said in the announcement. "Both 30- and 60- day delinquencies are at historic lows, and the percentage of money at risk has dropped as well. This gives lenders needed stability, which filters through the auto industry to consumers in the form of easier-to-obtain loans."
Loan portfolios from all types of lending bodies - including banks, finance companies, and credit unions - totaled $682 billion in the second quarter, compared to $646 billion during the same period last year. They are still not where they were before the recession, however. Loan portfolios for the second quarter of 2007 totaled $701 billion.
"Automotive loan portfolios continued their strong comeback in Q2 2012, as delinquencies continued to drop and total dollar volumes continued to rise," Zabriskie said. "Since the automotive loan industry is highly interdependent between banks and retailers, this continued strong performance for loan portfolios is good for automotive retailers and consumers alike."