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Less Likely to Lose Car to Repo at End of 2010. Auto Loan Delinquencies Flatten.

New data out from Transunion reports the national 60 day auto delinquency rate (the ratio of auto loan borrowers 60 or more days past due) remained relatively flat to finish 2010. The year over year delinquency rate fell 27.2 percent.

  • Auto loan delinquency was highest in Louisiana and Mississippi at 1.08 percent and 1.04 percent, respectively. The lowest auto loan delinquency rates were found in North Dakota (0.24 percent), Michigan (0.34 percent) and Minnesota (0.35 percent).
  • Largest improvements in delinquency from the previous quarter were found in the District of Columbia (22.1 percent decrease from 0.95 percent) and New Hampshire (17.6 percent decrease from 0.51 percent).
  • Auto loan delinquency rates rose in 32 states since the third quarter of 2010 — Wyoming came in at 0.45 percent (a 95.7 percent increase), New Mexico at 0.82 percent (a 49.1 percent increase), and Idaho at 0.74 percent (45.1 percent increase).
  • On a national basis, average auto debt per borrower rose slightly quarter over quarter from $12,500 to $12,602. Year-over-year, auto debt remained essentially flat in the fourth quarter of 2010.
  • Borrowers residing within the District of Columbia hold the largest average auto debt burden at $15,693, followed by Wyoming at $14,217. The lowest average auto debt per borrower was in Nebraska at $10,998.
  • States with the steepest quarterly increases in average auto debt on a percentage basis were Utah (+3.4 percent), the District of Columbia (+3.1 percent) and North Dakota (+2.9 percent). Nebraska experienced the sharpest drop in average auto debt (-1.3 percent), followed by Wyoming (-1.1 percent).
  • Year-over-year, national bank auto originations increased by 28 percent — marking the fourth consecutive quarter of growth.Source

My opinion is that while delinquencies are low, and that’s a good thing, it marks two indicators that are important.

  1. Lenders will be more likely to loosen their grip on money and extend credit again since it appears all the troubled credit has been cleaned out of the system.
  2. This additional bit of information reinforces my previous articles on the decreasing demand for debt relief services.


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About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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