Auto delinquency rates still low but moving upward

Delinquency rates for auto loans moved up slightly in the last quarter of 2013, with the 30 to 59 days past due (DPD), 60 to 89 DPD and 90 to 180 DPD delinquency rates at 2.18 percent, 0.56 percent and 0.24 percent, respectively. While the delinquency  rates are fairly low, the 30 to 59 DPD delinquency rate is at its highest level since Q4 2011, and the 60 to 89 DPD and 90 to 180 DPD delinquency rates are at their highest level since Q4 2010.

The current delinquency rates combined with continued growth in auto loan originations are an encouraging sign, but serve as a reminder to lenders to regularly monitor and adjust lending strategies based on current credit trends.

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Data for this article was sourced from Experian’s IntelliView