Creditnet News Story
Delinquencies on auto loans remain even in 4Q
Tuesday, March 2, 2010
By Sam Lee
Should fall by middle of 2010.
One thing that can affect a person's credit score is not paying bills on time, though a recent report shows that delinquencies on auto loans remained steady at the end of 2009.
According to TransUnion, the 60-day delinquency rate on auto loans remained even from the third to fourth quarters of last year at 0.81 percent. On a year-over-year basis, the country's delinquency rate went down 5.81 percent during the final quarter of 2009.
As far as the future is concerned, the firm believes that the auto delinquency rate should be between 0.75 and 0.8 percent by the end of 2010.
"Given a more positive outlook for GDP and other economic indicators except for employment, our current forecasting models point to a national 60-day auto delinquency rate of 0.65 percent by midyear, a decrease of 19.7 percent compared to fourth quarter 2009," said Peter Turek, automotive vice president in the group's financial services business unit.
According to Department of Commerce, gross domestic product for the fourth quarter was revised and increased from the 5.7 percent reported initially to 5.9 percent. GDP posted an increase of 2.2 percent during the prior quarter.
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