CHICAGO, IL--(Marketwire - Aug 23, 2011) - The national auto delinquency rate (the rate of borrowers 60 or more days past due) decreased for the seventh consecutive quarter, dropping to 0.44% at the end of the second quarter in 2011. This is according to TransUnion and its ongoing series of quarterly analyses of credit-active U.S. consumers and how they are managing credit related to mortgage, credit cards and auto loans.
Although auto delinquencies were expected to fall since last quarter in part due to seasonal influences, the Q2 2011 TransUnion data released today shows a moderate deceleration on a year-over-year basis since the third quarter of 2010.
"Historically, first and second quarter auto delinquencies tend to be lower than those experienced in the second half of the year -- all other things remaining equal," said Peter Turek, automotive vice president in TransUnion's financial services business unit. "However, over the last seven quarters -- on a year over year basis -- we have seen delinquencies trend downward as consumers continue to pay down debt. With auto sales improving, more auto loans are opened by consumers placing downward pressure on auto delinquency rates. A consumer's ability to repay is also helped by the recent low interest rates for new and used car loans, making purchase decisions and monthly payments more affordable."
Between the first and second quarters of 2011, 43 states experienced declines in their auto delinquency rates. On a more granular level, 60% of metropolitan statistical areas (MSA) saw declines in their delinquency rates last quarter. During the first quarter of 2011, 64% of MSAs experienced a decline in auto delinquency rates compared to only 49% in 4Q10.
"Today, national auto delinquency rates are at historic lows, at half the levels found in credit card nonpayment rates and over ten times lower than seen in the mortgage sector," added Turek. "Lenders that have money to lend are attracted to auto finance as it is a relatively low risk short-term asset and auto loan delinquencies are expected to remain at historically low levels through the end of the year. Consumers should benefit in the form of competitive offers, making purchase decisions easier and more affordable. "
TransUnion's forecast is based on various economic assumptions, such as unemployment rates, consumer sentiment, disposable income, and interest rates. The forecast changes as the economy deviates from a conservative economic forecast or if there are unanticipated shocks to the economy affecting recovery.
Q2 2011 Bank Auto Statistics -- Delinquency Rates
| Quarter over Quarter | Q1 2011 | Q2 2011 | Pct. Change | |||
| USA | 0.49% | 0.44% | (10.20%) | |||
| Year over year | Q2 2010 | Q2 2011 | Pct. Change | |||
| USA | 0.53% | 0.44% | (16.98%) | |||
| Highest Bank Auto Delinquency States | Q2 2011 |
| Mississippi | 0.85% |
| Louisiana | 0.83% |
| Tennessee | 0.70% |
| Oklahoma | 0.65% |
| Lowest Bank Auto Delinquency States | Q2 2011 |
| Idaho | 0.19% |
| Vermont | 0.23% |
| Montana | 0.24% |
| Connecticut | 0.24% |
| Top 3 Year-over-Year Increases | Q2 2010 | Q2 2011 | Pct. Change | |||
| Alaska | 0.33% | 0.41% | 24.24% | |||
| Wyoming | 0.33% | 0.41% | 24.24% | |||
| Missouri | 0.41% | 0.46% | 12.20% | |||
| Top 3 Year-over-Year Declines | Q2 2010 | Q2 2011 | Pct. Change | |||
| Idaho | 0.66% | 0.19% | (71.21%) | |||
| Utah | 0.71% | 0.34% | (52.11%) | |||
| Hawaii | 0.76% | 0.40% | (47.37%) | |||
Q2 2011 Bank Auto Statistics -- Bank Auto Debt
| Quarter over Quarter | Q1 2011 | Q2 2011 | Pct. Change | |||
| USA | $12,585.00 | $12,689.00 | 0.83% | |||
| Year over Year | Q2 2010 | Q2 2011 | Pct. Change | |||
| USA | $12,643.00 | $12,689.00 | 0.37% | |||
| Highest Bank Auto Debt Per Borrower | Q2 2011 |
| District of Columbia | $15,128.00 |
| Hawaii | $14,658.00 |
| Wyoming | $14,373.00 |
| Maryland | $14,057.00 |
| Lowest Bank Auto Debt Per Borrower | Q2 2011 |
| Nebraska | $11,106.00 |
| Ohio | $11,313.00 |
| Idaho | $11,382.00 |
| Missouri | $11,464.00 |
| Top 3 Year-over-Year Increases | Q2 2010 | Q2 2011 | Pct. Change | |||
| Wisconsin | $11,477.00 | $12,321.00 | 7.36% | |||
| Montana | $12,705.00 | $13,638.00 | 7.34% | |||
| Minnesota | $11,662.00 | $12,162.00 | 4.29% | |||
| Top 3 Year-over-Year Declines | Q2 2010 | Q2 2011 | Pct. Change | |||
| Nevada | $14,163.00 | $13,393.00 | (5.44%) | |||
| Idaho | $11,958.00 | $11,382.00 | (4.82%) | |||
| Louisiana | $14,261.00 | $13,662.00 | (4.20%) | |||
Supporting Resources/Links
TransUnion Trend Data Interactive U.S. Map
TransUnion 2Q11 Credit Card Release
TransUnion 2Q11 Mortgage Release
TransUnion Payment Hierarchy Study
TransUnion Deleveraging Analysis
TransUnion on Twitter
TransUnion's Trend Data database
The report is part of an ongoing series of quarterly consumer lending sector analyses focusing on credit card, bank auto loan and bank auto data available on TransUnion's Web site. Information for this analysis is culled from TransUnion's Trend Data and the anonymous credit files of approximately 10 percent of credit-active U.S. consumers, providing a real-life perspective on how they are managing their credit health.
TransUnion's Trend Data, a one-of-a-kind database consisting of 27 million anonymous consumer records randomly sampled every quarter from TransUnion's national consumer credit database. Each record contains more than 200 credit variables that illustrate consumer credit usage and performance. Since 1992, TransUnion has been aggregating this information at the county, Metropolitan Statistical Area (MSA), state and national levels. For the purpose of this analysis, the term "credit card" refers to those issued by banks.
About TransUnion
As a global leader in information and risk management, TransUnion creates advantages for millions of people around the world by gathering, analyzing and delivering information. For businesses, TransUnion helps improve efficiency, manage risk, reduce costs and increase revenue by delivering high quality data, and integrating advanced analytics and enhanced decision-making capabilities. For consumers, TransUnion provides the tools, resources and education to help manage their credit health and achieve their financial goals. Through these and other efforts, TransUnion is working to build stronger economies worldwide. Founded in 1968 and headquartered in Chicago, TransUnion reaches businesses and consumers in 23 countries around the world. www.transunion.com/business
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TransUnion
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