Recent data incorporated into the S&P/Experian Consumer Credit Default Indices found that auto loan defaults continued their uptick for the third month in a row.
The information from October, compiled by Experian and S&P Dow Jones Indices, revealed that the rate of auto loan defaults rose to 1.14%, up from 1.11% in September. August’s level rose to 1.09% from the all-time low of 1.01% set in July.
The report also found that the national composite rose to 1.55% last month from 1.46% in September, which David Blitzer, managing director and chairman of the index committee for S&P Dow Jones Indices, said was “mostly driven by an increase in the first mortgage default rate.”
The indices are published monthly to track the default experience of consumer balances in the auto, bankcard, first mortgage lien, and second mortgage lien categories. They are computed via information obtained from Experian’s consumer credit database, which is sourced from monthly individual consumer loan and payment data supplied by lenders to Experian. The contributors include leading banks and mortgage companies, and covers roughly $11 trillion in outstanding loans obtained from 11,500 lenders.
