Direct auto loan delinquencies fell in the second quarter, while indirect auto loan delinquencies inched up, according to the American Bankers Association’s Consumer Credit Delinquency Bulletin.
For the second quarter, direct loan delinquencies fell 3 basis points, to 0.88% from 0.91%. Indirect loan delinquencies rose 6 basis points, to 1.72% from 1.66%.
“A leveling off in delinquency rates was inevitable after a four-year downward trend that saw consumers reduce debt and dramatically improve their personal balance sheets,” ABA Chief Economist James Chessen said. “The good news is that delinquency rates remain near historical lows and are unlikely to spike in the near future.”
The report also noted that the composite delinquency rate for all closed-end loans was up 6 bps to 1.76%.
Here’s a look at auto delinquency data since 2000, per the ABA:
