The bad credit auto loan market is constantly shifting, but borrowers got some good news today when major credit bureau TransUnion revealed that delinquencies have hit record lows for the automotive sector.
Delinquencies, defined as a missed payment of 60 days, can have a severely negative impact on a credit score, and is one of the trends that lenders keep an eye on to determine the overall financial behavior of consumers. Borrowers will be happy to know that the rate of delinquencies fell nearly 26 percent in the first quarter of 2011, reaching a record low that has not been measured since the company first began tracking data in 1999.
"Continued improvement in auto delinquencies is a reflection of the stronger auto sales market," said Peter Turek, automotive vice president for TransUnion's financial services business unit. "As consumers' confidence in the economy improves, and with auto loan rates remaining at relatively low levels, more people are making auto purchases. Add to that the fact that consumers with auto loans are making timely payments and we are seeing delinquency rates at record low levels."
The improved financial responsibility of American consumers is in turn leading to more auto loans available for a wide variety of customers: new loan originations were up 22 percent in the same period. It's a great time for borrowers to consider a car loan, but interested parties should act quickly.”,The bad credit auto loan market is constantly shifting