Auto loan delinquencies and repossession rates rose in the first quarter, according to Experian Automotive’s State of Automotive Finance Report. When compared with 1Q12, 30-day delinquencies rose 1.3%, 60-day delinquencies had an uptick of 12.4%, and repos increased 16.9%.
“Obviously, we never want to see a rise in delinquencies or repossessions, but when you compare the current findings with previous years, they are still lower than the recession-level rates,” said Senior Director of Automotive Credit Melinda Zabritski.
Zabritski anticipates continued increases as some of the subprime loans on the books begin to deteriorate. “However, one thing most lenders will agree upon is that today’s subprime borrower is less delinquent than those in the past,” she added.
Other data from the first-quarter data Experian found:
- Total dollar volume of automotive loans grew by 9.6% to reach $726 billion from $663 billion in Q112.
- Banks increased loan portfolios by $20 billion, finance companies by $18 billion, credit unions by $14 billion, and captive finance companies by $12 billion.
- While average charge-off amounts for defaulted loans rose to $7,401 from $6,739 the previous year, they are still well below recession levels; average charge-offs in 1Q09 $10,126.
