Welcome!

News Feed Item

TransUnion: Rising Auto Loan Debt Trend Reaches Three-Year Mark; Delinquencies Continue to Remain Low

CHICAGO, IL -- (Marketwired) -- 05/19/14 -- Auto loan debt per borrower has now increased for three consecutive years, according to the latest TransUnion auto loan report. Auto loan debt per borrower has risen nearly 13% -- more than $1,900 -- since this trend began in Q1 2011.

Auto loan debt per borrower jumped 4.1% from $16,191 in Q1 2013 to $16,862 in Q1 2014. On a quarterly basis, auto loan debt increased from $16,769 in Q4 2013.

The auto loan delinquency rate (the ratio of borrowers 60 days or more delinquent on their auto loans) increased to 1.00% in Q1 2014, up from 0.95% in Q1 2013. However, auto loan delinquencies dropped sharply on a quarterly basis from 1.14% in Q4 2013. The delinquency rate remains below the Q1 average of 1.10% observed between 2008 and 2014.

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.

"The continued increase in auto loan debt is a healthy sign that auto sales and the auto loan market continue to perform well," said Pete Turek, vice president of automotive in TransUnion's financial services business unit. "It's also encouraging to see auto loan delinquency rates remain at low levels; the 14-basis point drop this last quarter is especially encouraging."

TransUnion recorded 70.0 million auto loan accounts as of Q1 2014, up from 57.4 million in Q1 2013. Viewed one quarter in arrears (to ensure all accounts are included in the data), new account originations increased to 5.69 million in Q4 2013, up from 5.29 million in Q4 2012. "The fact that there are nearly 13 million more auto loan accounts than just one year ago points to strong demand for credit and the wide availability of credit in the marketplace," added Turek.

The subprime delinquency rate (those consumers with a VantageScore® 2.0 credit score lower than 641 on a scale of 501-990) increased from 5.11% in Q1 2013 to 5.52% in Q1 2014. The share of non-prime, higher risk loan originations (with a VantageScore 2.0 credit score lower than 700) grew by 34 basis points (from 31.62% in Q4 2012 to 31.96% in Q4 2013). This percentage is still lower than what was observed at the beginning of the recession (37.34% in Q4 2007). "Auto loans to the subprime population are growing as are delinquency rates for that group, but as an industry the level of risk is well managed," said Turek.

Eleven states experienced a decline in their auto loan delinquency rates between Q1 2013 and Q1 2014. The largest delinquency declines occurred in Oregon, Hawaii and California. The largest increases occurred in Michigan, Arkansas and Alaska. Auto loan balances rose in every state between Q1 2013 and Q1 2014.

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.

Q1 2014 Auto Loan Statistics - Consumer-Level Delinquency Rates

Quarter over Quarter                         Q4 2013    Q1 2014  Pct. Change
----------------------------------------------------------------------------
USA                                              1.14%      1.00%    (12.3%)
----------------------------------------------------------------------------


Year over year                               Q1 2013    Q1 2014  Pct. Change
----------------------------------------------------------------------------
USA                                              0.95%      1.00%       5.3%
----------------------------------------------------------------------------


Auto Loan Consumer Delinquency Rates for Select States             Q1 2014
----------------------------------------------------------------------------
California                                                             0.76%
----------------------------------------------------------------------------
Florida                                                                0.97%
----------------------------------------------------------------------------
Illinois                                                               1.09%
----------------------------------------------------------------------------
New York                                                               0.79%
----------------------------------------------------------------------------
Texas                                                                  1.18%
----------------------------------------------------------------------------


Largest Year-over-Year Increases             Q1 2013    Q1 2014  Pct. Change
----------------------------------------------------------------------------
Michigan                                         0.92%      1.12%      21.7%
----------------------------------------------------------------------------
Arkansas                                         0.95%      1.15%      21.1%
----------------------------------------------------------------------------
Alaska                                           0.64%      0.77%      20.3%
----------------------------------------------------------------------------


Largest Year-over-Year Declines              Q1 2013    Q1 2014  Pct. Change
----------------------------------------------------------------------------
Oregon                                           0.62%      0.54%    (12.9%)
----------------------------------------------------------------------------
Hawaii                                           0.79%      0.71%    (10.1%)
----------------------------------------------------------------------------
California                                       0.82%      0.76%     (7.3%)
----------------------------------------------------------------------------

Q1 2014 Auto Loan Statistics - Auto Loan Debt Per Borrower

Quarter over Quarter                         Q4 2013    Q1 2014  Pct. Change
----------------------------------------------------------------------------
USA                                            $16,769    $16,862       0.6%
----------------------------------------------------------------------------


Year over year                               Q1 2013    Q1 2014  Pct. Change
----------------------------------------------------------------------------
USA                                            $16,191    $16,862       4.1%
----------------------------------------------------------------------------


Auto Loan Debt per Borrower for Select States                      Q1 2014
----------------------------------------------------------------------------
California                                                           $17,093
----------------------------------------------------------------------------
Florida                                                              $16,939
----------------------------------------------------------------------------
Illinois                                                             $16,304
----------------------------------------------------------------------------
New York                                                             $14,784
----------------------------------------------------------------------------
Texas                                                                $21,208
----------------------------------------------------------------------------


Largest Year-over-Year Increases             Q1 2013    Q1 2014  Pct. Change
----------------------------------------------------------------------------
New Mexico                                     $18,719    $20,042       7.1%
----------------------------------------------------------------------------
Arizona                                        $17,279    $18,421       6.6%
----------------------------------------------------------------------------
Texas                                          $19,985    $21,208       6.1%
----------------------------------------------------------------------------


Largest Year-over-Year Declines            Q1 2013    Q1 2014    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=2596033

Contact
Dave Blumberg
TransUnion
E-mail Email Contact
Telephone (312) 972 6646

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
We all know that end users experience the Internet primarily with mobile devices. From an app development perspective, we know that successfully responding to the needs of mobile customers depends on rapid DevOps – failing fast, in short, until the right solution evolves in your customers' relationship to your business. Whether you’re decomposing an SOA monolith, or developing a new application cloud natively, it’s not a question of using microservices – not doing so will be a path to eventual b...
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities – ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups. As a result, many firms employ new business models that place enormous impor...
SYS-CON Events announced today that SourceForge has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. SourceForge is the largest, most trusted destination for Open Source Software development, collaboration, discovery and download on the web serving over 32 million viewers, 150 million downloads and over 460,000 active development projects each and every month.
The next XaaS is CICDaaS. Why? Because CICD saves developers a huge amount of time. CD is an especially great option for projects that require multiple and frequent contributions to be integrated. But… securing CICD best practices is an emerging, essential, yet little understood practice for DevOps teams and their Cloud Service Providers. The only way to get CICD to work in a highly secure environment takes collaboration, patience and persistence. Building CICD in the cloud requires rigorous ar...
SYS-CON Events announced today that Dasher Technologies will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Dasher Technologies, Inc. ® is a premier IT solution provider that delivers expert technical resources along with trusted account executives to architect and deliver complete IT solutions and services to help our clients execute their goals, plans and objectives. Since 1999, we'v...
As popularity of the smart home is growing and continues to go mainstream, technological factors play a greater role. The IoT protocol houses the interoperability battery consumption, security, and configuration of a smart home device, and it can be difficult for companies to choose the right kind for their product. For both DIY and professionally installed smart homes, developers need to consider each of these elements for their product to be successful in the market and current smart homes.
The session is centered around the tracing of systems on cloud using technologies like ebpf. The goal is to talk about what this technology is all about and what purpose it serves. In his session at 21st Cloud Expo, Shashank Jain, Development Architect at SAP, will touch upon concepts of observability in the cloud and also some of the challenges we have. Generally most cloud-based monitoring tools capture details at a very granular level. To troubleshoot problems this might not be good enough.
In the fast-paced advances and popularity in cloud technology, one of the most critical factors revolves around concerns for security of your critical data. How to assure both your company and your customers they can confidently trust and utilize your cloud environment is most often top on the list. There is a method to evaluating and providing security that exceeds conventional modes of protecting data both within the cloud as well externally on mobile and other devices. With the public failure...
SYS-CON Events announced today that MIRAI Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MIRAI Inc. are IT consultants from the public sector whose mission is to solve social issues by technology and innovation and to create a meaningful future for people.
Transforming cloud-based data into a reportable format can be a very expensive, time-intensive and complex operation. As a SaaS platform with more than 30 million global users, Cornerstone OnDemand’s challenge was to create a scalable solution that would improve the time it took customers to access their user data. Our Real-Time Data Warehouse (RTDW) process vastly reduced data time-to-availability from 24 hours to just 10 minutes. In his session at 21st Cloud Expo, Mark Goldin, Chief Technolo...
Companies are harnessing data in ways we once associated with science fiction. Analysts have access to a plethora of visualization and reporting tools, but considering the vast amount of data businesses collect and limitations of CPUs, end users are forced to design their structures and systems with limitations. Until now. As the cloud toolkit to analyze data has evolved, GPUs have stepped in to massively parallel SQL, visualization and machine learning.
SYS-CON Events announced today that Massive Networks, that helps your business operate seamlessly with fast, reliable, and secure internet and network solutions, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. As a premier telecommunications provider, Massive Networks is headquartered out of Louisville, Colorado. With years of experience under their belt, their team of...
SYS-CON Events announced today that TidalScale, a leading provider of systems and services, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale has been involved in shaping the computing landscape. They've designed, developed and deployed some of the most important and successful systems and services in the history of the computing industry - internet, Ethernet, operating s...
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, will discuss how from store operations...