Auto repossessions plunge, but 60-day loan delinquencies climb
Experian Automotive’s latest data on car loan delinquency rates holds bad news for the “repo man.”
The auto loan industry’s repossession rate plunged almost 28% in the fourth quarter of last year compared to the same quarter a year earlier and stands at just 0.46%.
However, the number of borrowers delinquent in their payments for 60 days increased slightly in the quarter to 0.74% from 0.76%. It was the first rise for either 30- or 60-day loan delinquencies in the fourth quarter since 2009.
“Overall, our Q4 analysis shows that the auto lending market is extremely healthy,” said Melinda Zabritski, director of automotive credit for Experian Automotive. “Of course, you never want to see an increase in delinquencies, but when you take a step back and look at the market compared to where it was three years ago, we still have remarkable stability.”
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