Auto Loan Defaults Remain Flat in 1Q13, New Report Finds

The auto loan default rate remained flat in the first quarter, found the S&P/Experian Consumer Credit Default Indices. The data also indicated the rate stayed flat at 1.11% between February and March.

Analysts from S&P Dow Jones and Experian discovered many decreases in national default rates last month, with the national composite stable at 1.50% in March, down from 1.55% a month earlier. First and second mortgage default rates also decreased month-over-month, while there was an uptick in the bank card default rate.

“The first quarter of 2013 shows healthy consumer credit quality,” David Blitzer, managing director and chairman of the index committee for S&P Dow Jones Indices, said in a published report. “All loan types remain below their respective levels a year ago.”

Four of the five cities the analysts study saw drops in their default rates last month: Miami (down 28 basis points), Chicago (25 bps), Los Angeles (15 bps), and Dallas (6 bps), Blitzer added. Only New York saw an increase, rising 38 bps.

The S&P/Experian Consumer Credit Default Indices are released monthly and track the default experience of consumer balances in four key loan classes: auto, bankcard, first mortgage lien, and second mortgage lien. They are based on data from Experian’s consumer credit database, which is culled from monthly individual consumer loan and payment data lenders submit to the company. Experian’s contributor base is made up of banks and mortgage companies, covering roughly $11 trillion in outstanding loans obtained from 11,500 lenders.