The rate of overdue auto loans in the US has reached its lowest level over the past 10 years, as more Americans pay their car payments on time.
In the second quarter the rate of auto loan payments at least 60 days overdue decreased to 0.33% that means almost 25% compared to the same period last year and 8% compared to the first three moths of this year. This is the lowest level since 1999 when TransUnion began tracking auto loan data. The highest level was reached in 2000, in the first quarter with 2.39%.
This is the 11th consecutive quarter when the level falls, and the reasons might be a strong market for used cars offering incentives for customers helping them to avoid falling behind payments but increasing their investment market value, and lower interest rates that help more customers qualify for financing.
“You need your car to get to work, or if you have to seek employment, you need a car to get to the interviews,” said Peter Turek, a vice president of TransUnion’s financial services business unit.
Even if Americans pay their car payments on time, their auto loan debt has also increased 6% from 2011 to $13,427. Average auto debt per borrower is raised by the banks offering more auto loans.