The portion of car loans that are at least 60 days delinquent is expected to decrease throughout 2011, according to a recent analysis by credit reporting bureau TransUnion.
Though the delinquency rate rose 9.4 percent between the second and third quarters of this year, this year's delinquencies reflect a dramatic decline from those during the worst moments of the recession. The year-over-year delinquency rate fell by a full 28.4 percent in the third quarter of this year. The downward trend is expected to continue – 2011's predicted delinquency rate is expected to be 30 percent below what it was in the fourth quarter of 2008.
During 2011, car loan delinquency rates are expected to drop 3.2 percent.
Lower delinquency rates may make lenders more confident in expanding credit, potentially making it easier for consumers with bad credit history to obtain car financing. Those who want to purchase a reliable new or used vehicle may want to use a car loan calculator to determine what kind of vehicle they can afford.