Amid all the worst-is-behind-us sentiments being tossed about these days, auto loan delinquencies are still on the rise, TransUnion says.
In data released yesterday, TransUnion indicated that the year-over-year national 60-day auto delinquency rate increased 27.69% in the first quarter of 2009 to 0.83%. While that is not a terribly high number, TransUnion expects the 60-day delinquency to continue its march higher:
TransUnion’s national 60-day auto delinquency rate forecast for the first quarter of 2009 was short by about 2%, as a slightly more favorable vision of the economic environment prompted some downward revisions to our forecast through the end of the year. Our current forecasting models indicate that the national 60-day auto 
delinquency rate will rise to about 1% by year-end, about the same level as that experienced at the end of our last recession. However, the overall economy, weak labor market and lower disposable income levels will continue to negatively impact the consumer well into 2010.
That is no small increase. The 17 basis points of additional delinquencies means an increase in the past-due rate of nearly 21% by yearend. And I was just starting to feel good about the economy.
