Welcome!

News Feed Item

TransUnion: Auto Loan Debt Rises for 11th Straight Quarter; Delinquencies Remain Subdued

CHICAGO, IL -- (Marketwired) -- 02/25/14 -- Auto loan debt per borrower increased for the 11th straight quarter, moving up 4.4% from $16,060 in Q4 2012 to $16,769 in Q4 2013. On a quarterly basis, auto loan debt also increased from $16,685 in Q3 2013.

The auto loan delinquency rate (the ratio of borrowers 60 days or more delinquent on their auto loans) increased to 1.14% in Q4 2013, up on both a quarterly and yearly basis (from 1.04% in Q3 2013 and 1.09% in Q4 2012). The delinquency rate remains below the Q4 average of 1.29% observed between 2007 and 2013.

The data provided are gathered from TransUnion's proprietary Industry Insights Report (IIR), a quarterly overview summarizing data, trends and perspectives on the U.S. consumer lending industry. The report is based on anonymized credit data from virtually every credit-active consumer in the United States.

"While we observed an uptick in auto loan delinquencies, there are reasons to believe they will continue to remain relatively low in the near future," said Pete Turek, vice president of automotive in TransUnion's financial services business unit. "First, while auto loan originations are increasing at a rapid pace, the percentage of non-prime accounts remains low. In fact, the percentage of non-prime borrowers for all auto loan accounts was lower in Q4 2013 than it was the previous year"

The subprime delinquency rate (those consumers with a VantageScore® 2.0 credit score lower than 641 on a scale of 501-990) increased from 5.73% in Q4 2012 to 6.12% in Q4 2013. "While this is nearly a 7% yearly increase, it should be noted that subprime delinquencies remain below levels we observed during the recession," said Turek.

TransUnion recorded 60.5 million auto loan accounts as of Q4 2013, up from 57.0 million in Q4 2012. Viewed one quarter in arrears (to ensure all accounts are included in the data), new account originations increased to 6.64 million in Q3 2013, up from 5.99 million in Q3 2012.

The share of non-prime, higher risk loan originations (with a VantageScore 2.0 credit score lower than 700) grew by 16 basis points (from 32.37% in Q3 2012 to 32.53% in Q3 2013). This percentage is still much lower than what was observed pre-recession (36.97% in Q3 2007). "We expect share of non-prime, higher risk loan originations to continue trending upward due to the growth of competitors in this segment."

Only 14 states experienced either a decline or had their auto loan delinquency rates remain flat between Q4 2012 and Q4 2013. The largest delinquency declines occurred in Oregon, New Jersey and Delaware. The largest increases occurred in Michigan, Alaska and Arkansas. Auto loan balances rose in every state between Q4 2012 and Q4 2013.

TransUnion is forecasting auto loan delinquencies to drop in Q1 2014 to 1.02% because of historic seasonality associated with auto financing. "Auto delinquencies tend to drop in the first quarter of the year, and we expect current market conditions will place downward pressure on delinquencies," said Turek.

TransUnion's forecast is based on various economic assumptions, such as gross state product, consumer sentiment, unemployment rates, real personal income, and others. The forecast would change if there were unanticipated shocks to the economy.

This information is reported by TransUnion and is part of its ongoing series of quarterly analyses of credit-active U.S. consumers and how they are managing credit related to mortgages, credit cards and auto loans. To subscribe to TransUnion news releases, please click here.

Q4 2013 Auto Loan Statistics - Consumer-Level Delinquency Rates

Quarter over Quarter Q3 2013 Q4 2013 Pct. Change

----------------------------------------------------------------------------
USA                              1.04%              1.14%               9.6%
----------------------------------------------------------------------------

Year over year Q4 2012 Q4 2013 Pct. Change

----------------------------------------------------------------------------
USA                              1.09%              1.14%               4.6%
----------------------------------------------------------------------------

Auto Loan Consumer Delinquency Rates for Select States Q4 2013

----------------------------------------------------------------------------
California                                                             0.88%
----------------------------------------------------------------------------
Florida                                                                1.18%
----------------------------------------------------------------------------
Illinois                                                               1.23%
----------------------------------------------------------------------------
New York                                                               0.87%
----------------------------------------------------------------------------
Texas                                                                  1.40%
----------------------------------------------------------------------------

Largest Year-over-Year Increases Q4 2012 Q4 2013 Pct. Change

----------------------------------------------------------------------------
Michigan                         0.96%              1.20%              25.0%
----------------------------------------------------------------------------
Alaska                           0.59%              0.73%              23.7%
----------------------------------------------------------------------------
Arkansas                         1.11%              1.34%              20.7%
----------------------------------------------------------------------------

Largest Year-over-Year Declines Q4 2012 Q4 2013 Pct. Change

----------------------------------------------------------------------------
Oregon                           0.68%              0.60%            (11.8%)
----------------------------------------------------------------------------
New Jersey                       0.93%              0.88%             (5.4%)
----------------------------------------------------------------------------
Delaware                         1.42%              1.35%             (4.9%)
----------------------------------------------------------------------------

Q4 2013 Auto Loan Statistics - Auto Loan Debt Per Borrower

Quarter over Quarter Q3 2013 Q4 2013 Pct. Change

----------------------------------------------------------------------------
USA                            $16,685            $16,769               0.5%
----------------------------------------------------------------------------

Year over year Q4 2012 Q4 2013 Pct. Change

----------------------------------------------------------------------------
USA                            $16,060            $16,769               4.4%
----------------------------------------------------------------------------

Auto Loan Debt per Borrower for Select States Q4 2013

----------------------------------------------------------------------------
California                                                           $16,949
----------------------------------------------------------------------------
Florida                                                              $16,759
----------------------------------------------------------------------------
Illinois                                                             $16,220
----------------------------------------------------------------------------
New York                                                             $14,812
----------------------------------------------------------------------------
Texas                                                                $20,948
----------------------------------------------------------------------------

Largest Year-over-Year Increases Q4 2012 Q4 2013 Pct. Change

----------------------------------------------------------------------------
New Mexico                     $18,453            $19,812               7.4%
----------------------------------------------------------------------------
Louisiana                      $18,598            $19,898               7.0%
----------------------------------------------------------------------------
Arizona                        $17,050            $18,240               7.0%
----------------------------------------------------------------------------

Largest Year-over-Year Declines Q4 2012 Q4 2013 Pct. Change

----------------------------------------------------------------------------
*
----------------------------------------------------------------------------

*No states experienced declines in their auto loan debt per borrower.

About TransUnion
As a global leader in credit and information management, TransUnion creates advantages for millions of people around the world by gathering, analyzing and delivering information. For businesses, TransUnion helps improve efficiency, manage risk, reduce costs and increase revenue by delivering comprehensive data and advanced analytics and decisioning. For consumers, TransUnion provides the tools, resources and education to help manage their credit health and achieve their financial goals. Through these and other efforts, TransUnion is working to build stronger economies worldwide. Founded in 1968 and headquartered in Chicago, TransUnion reaches businesses and consumers in 33 countries around the world on five continents. www.transunion.com/business

Image Available: http://www2.marketwire.com/mw/frame_mw?attachid=2527513

Add to Digg Bookmark with del.icio.us Add to Newsvine

Contact
Dave Blumberg
TransUnion
E-mail: Email Contact

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Today, we have more data to manage than ever. We also have better algorithms that help us access our data faster. Cloud is the driving force behind many of the data warehouse advancements we have enjoyed in recent years. But what are the best practices for storing data in the cloud for machine learning and data science applications?
All zSystem customers have a significant new business opportunity to extend their reach to new customers and markets with new applications and services, and to improve the experience of existing customers. This can be achieved by exposing existing z assets (which have been developed over time) as APIs for accessing Systems of Record, while leveraging mobile and cloud capabilities with new Systems of Engagement applications. In this session, we will explore business drivers with new Node.js apps ...
The hierarchical architecture that distributes "compute" within the network specially at the edge can enable new services by harnessing emerging technologies. But Edge-Compute comes at increased cost that needs to be managed and potentially augmented by creative architecture solutions as there will always a catching-up with the capacity demands. Processing power in smartphones has enhanced YoY and there is increasingly spare compute capacity that can be potentially pooled. Uber has successfully ...
Using new techniques of information modeling, indexing, and processing, new cloud-based systems can support cloud-based workloads previously not possible for high-throughput insurance, banking, and case-based applications. In his session at 18th Cloud Expo, John Newton, CTO, Founder and Chairman of Alfresco, described how to scale cloud-based content management repositories to store, manage, and retrieve billions of documents and related information with fast and linear scalability. He addres...
The technologies behind big data and cloud computing are converging quickly, offering businesses new capabilities for fast, easy, wide-ranging access to data. However, to capitalize on the cost-efficiencies and time-to-value opportunities of analytics in the cloud, big data and cloud technologies must be integrated and managed properly. Pythian's Director of Big Data and Data Science, Danil Zburivsky will explore: The main technology components and best practices being deployed to take advantage...
For years the world's most security-focused and distributed organizations - banks, military/defense agencies, global enterprises - have sought to adopt cloud technologies that can reduce costs, future-proof against data growth, and improve user productivity. The challenges of cloud transformation for these kinds of secure organizations have centered around data security, migration from legacy systems, and performance. In our presentation, we will discuss the notion that cloud computing, properl...
The deluge of IoT sensor data collected from connected devices and the powerful AI required to make that data actionable are giving rise to a hybrid ecosystem in which cloud, on-prem and edge processes become interweaved. Attendees will learn how emerging composable infrastructure solutions deliver the adaptive architecture needed to manage this new data reality. Machine learning algorithms can better anticipate data storms and automate resources to support surges, including fully scalable GPU-c...
With more than 30 Kubernetes solutions in the marketplace, it's tempting to think Kubernetes and the vendor ecosystem has solved the problem of operationalizing containers at scale or of automatically managing the elasticity of the underlying infrastructure that these solutions need to be truly scalable. Far from it. There are at least six major pain points that companies experience when they try to deploy and run Kubernetes in their complex environments. In this presentation, the speaker will d...
To Really Work for Enterprises, MultiCloud Adoption Requires Far Better and Inclusive Cloud Monitoring and Cost Management … But How? Overwhelmingly, even as enterprises have adopted cloud computing and are expanding to multi-cloud computing, IT leaders remain concerned about how to monitor, manage and control costs across hybrid and multi-cloud deployments. It’s clear that traditional IT monitoring and management approaches, designed after all for on-premises data centers, are falling short in ...
When applications are hosted on servers, they produce immense quantities of logging data. Quality engineers should verify that apps are producing log data that is existent, correct, consumable, and complete. Otherwise, apps in production are not easily monitored, have issues that are difficult to detect, and cannot be corrected quickly. Tom Chavez presents the four steps that quality engineers should include in every test plan for apps that produce log output or other machine data. Learn the ste...
Digital Transformation is well underway with many applications already on the cloud utilizing agile and devops methodologies. Unfortunately, application security has been an afterthought and data breaches have become a daily occurrence. Security is not one individual or one's team responsibility. Raphael Reich will introduce you to DevSecOps concepts and outline how to seamlessly interweave security principles across your software development lifecycle and application lifecycle management. With ...
The vast majority of businesses now use cloud services, yet many still struggle with realizing the full potential of their IT investments. In particular, small and medium-sized businesses (SMBs) lack the internal IT staff and expertise to fully move to and manage workloads in public cloud environments. Speaker Todd Schwartz will help session attendees better navigate the complex cloud market and maximize their technical investments. The SkyKick co-founder and co-CEO will share the biggest challe...
Enterprises are striving to become digital businesses for differentiated innovation and customer-centricity. Traditionally, they focused on digitizing processes and paper workflow. To be a disruptor and compete against new players, they need to gain insight into business data and innovate at scale. Cloud and cognitive technologies can help them leverage hidden data in SAP/ERP systems to fuel their businesses to accelerate digital transformation success.
Dhiraj Sehgal works in Delphix's product and solution organization. His focus has been DevOps, DataOps, private cloud and datacenters customers, technologies and products. He has wealth of experience in cloud focused and virtualized technologies ranging from compute, networking to storage. He has spoken at Cloud Expo for last 3 years now in New York and Santa Clara.
Predicting the future has never been more challenging - not because of the lack of data but because of the flood of ungoverned and risk laden information. Microsoft states that 2.5 exabytes of data are created every day. Expectations and reliance on data are being pushed to the limits, as demands around hybrid options continue to grow.