Car Loan Late-Payment Rate Saw Annual Decrease in 2012

During the final quarter of 2012, a time period during which borrowers tend to push debt payments back for holiday spending, fewer Americans fell behind on their auto loan obligations. According to credit reporting agency TransUnion, the car loan late-payment rate decreased on an annual level and stayed near a decade low point.

“Consumers are valuing their auto-related loans a little more ahead of other things when they do get a little bit stretched in their budgets,” said Peter Turek, automotive vice president in TransUnion’s financial services business unit.

Auto loans with late payments beyond 60 days was 0.41% in 3Q12, an increase from the 0.38 from the previous quarter, but down the 0.46% seen earlier in the year, found TransUnion data. A record low, according to company data that stretches back to 1999, was the 0.33% from 2Q12.

U.S. auto sales grew 13.5% last year to reach 14.5 million, and analysts anticipate that a million more units will be sold this year as more consumers continue to replace their aging vehicles.