The ratio of borrowers who are 60 days or more overdue on car payments has declined for the second consecutive quarter, according to an Aug. 21 news release by TransUnion, and is now at its lowest rate since the credit agency began tracking such data in 1999.
Auto loan delinquency rates now sit at .33%, down from .36% in the first quarter of 2012. Since the second quarter of 2011, delinquency rates have declined 25% from .44%.
There has also been increased demand for both new and used autos, and consumers are spending more. Per borrower, bank auto debt has increased nearly 6% in the last year, and now sits at $13,427. Drivers in Texas, Louisiana, and Alabama hold the most bank auto debt, while drivers in Nebraska, Ohio, and Kansas hold the least.
Despite the increase in bank auto loan debt, 37 states have seen declines in their auto delinquency rates since the first quarter of 2012. The states with the highest bank auto delinquency rates are Louisiana and Mississippi, with .60% each, and Oklahoma, with .55%.