The Wall Street Journal reports that after many long months of bad news for the recession-laden vehicle industry, it’s time for some good news. Credit agency TransUnion has conducted a study indicating that car loan late payment percentage of 60 days or more has fallen noticeably in the past quarter of 2010. TransUnion has just been full of good news since they announced a decrease in credit card payment delinquency.
Saving money makes the overall economy sluggish
Fewer consumers are willing to plunk down their incredible shrinking dollars on big ticket purchases like automobiles, which has been less than stimulating for prospects of an economic transformation. Yet it has been a good for car loan repayment habits, states Peter Turek of TransUnion.
”Although part of the reason for the in late payment quotes is the influence of new, lower risk loans, consumers don’t see a quick fix to the short-term economic and employment situation,” exclaimed Turek.
Q2 results were 20% better than Q1
Consumers 60 days late or more on their automobile loans fell by .53. According to the Journal, this was a 20 percent over The first quarter delinquency rates. That’s the largest decline since summer 2001, writes the Wall Street Journal. Vermont came out on top when it comes to most improved payees, while Rhode Island, Utah and Montana came out on the bottom. The Maple Syrup state experienced nearly a 50 percent drop, from 1 percent to .58 percent. On a parallel note, Hawaii’s rate of loan origination was lowest within the study. This could possibly be because prices in the island paradise are high all around, so old vehicles are being driven into the ground.
By the fourth quarter of 2010, nevertheless, TransUnion is predicting a .6 percent increase in delinquency. Thus, enjoy some good news while you can. Blame it on the holidays, why don’t you.
Additional reading
Wall Street Journal
online.wsj.com/article/BT-CO-20100830-703526.html
