Consumers are having slightly more trouble making their car payments on time, according to data published by Experian Automotive and TransUnion, which noted recently that delinquencies on auto loans have risen.
Both credit reporting agencies said the number of consumers who were 60-days late on their car loan payments had increased. Experian said that delinquencies rose from 0.72 percent in the fourth quarter 2011 to 0.74 percent in the same quarter last year, stating it was the first time since 2009 it had tracked a year-over-year rise. TransUnion noted that the 60-day delinquency rate rose from 0.38 percent in the third quarter 2011 to 0.41 percent in the same quarter last year. Neither agency felt the increase was cause for concern, stating that the auto lending market was very stable.
A stable market for car loans is a good thing for consumers looking to buy a car since it helps credit continue to loosen. TransUnion noted that the number of higher-risk consumers with a credit score lower than 700 on a scale of 501-990 has been rising steadily for the last several years and is currently at 32.4 percent, up from 27.6 percent in the third quarter of 2010.
Are you keeping up with your car payments?
Tara Baukus Mello writes the cars blog as well as the weekly Driving for Dollars column, providing both practical financial advice for consumers as well as insight into the latest developments in the automotive world. Follow her on Facebook here or on Twitter @SheDrives.