Major credit bureau TransUnion reports that car loan delinquencies fell across the board in the second quarter of 2009, representing an increase in fiscal responsibility for consumers.
According to the company, delinquencies, defined as a late payment of more than 60 days, fell to .53 percent of all auto loans from .73 percent in 2009, a 27.4 percent decrease. The number was also down 19.7 percent as compared to the first quarter.
The company also noted that new loans written during the quarter increased by 18.7 percent, with the average debt on a loan up slightly to $12,643.
“The national trend we are seeing continues to point to a clear improvement in payment behavior,” said Peter Turek, automotive vice president at TransUnion.
Overall, the numbers point to more business lending as consumers improve their financial behavior. Meanwhile, an uptick in car sales is contributing to more buyers interested in applying for car loans.
Those with bad credit should know that they are pre-approved for a car loan in many cases and can find out exactly what type of rates are available by applying online.