Want to find out what percentage of New York borrowers in the 18-to-34 age bracket are 90-or-more days delinquent on their auto loans? Or how many 50-to-64-year-old auto loan borrowers in Connecticut have credit scores higher than 620?
Now you can, thanks to a nifty, interactive tool launched last week by the Federal Reserve Bank of New York. The tool tracks regional indicators of… Continue
Added by Marcie Belles on June 13, 2013 at 2:30pm —
As the economy continues to improve, borrowers 60 or more days past due will stay close to record-low levels next year, according to TransUnion’s annual national auto loan delinquency forecast, released today.
Despite the lows, the forecast predicts that auto debt per borrower will continue to rise in 2013, up to $14,133 in Q413 from the $13,689 TransUnion anticipates seeing at the end of this year.
Since reaching its peak of 0.86% in 4Q08, the national auto loan delinquency… Continue
Added by Nikki Mascali on December 18, 2012 at 10:00am —
Credit bureau Experian released a report recently about auto finance trends, and I wonder if it was equivalent to watching a horror movie when the camera follows the teenage babysitter as she tries to figure out what's making that scratching noise in the attic. Everyone watching the movie knows that the serial killer is up there, but up she goes, completely oblivious to what's… Continue
Added by Mike Gibb on September 3, 2012 at 11:00pm —
Chase Auto Finance’s loan portfolio hit a seven-year high in the second quarter.
The bank closed the period with $48.5 billion of loans outstanding, up from $47.7 billion at March 31. By comparison, in the second quarter of 2005, Chase Auto’s portfolio totaled $50.4 billion.
For the past three years, Chase Auto’s portfolio has been hovering around the $47-million mark, up from about $42 million for the prior three years. In 2005, though, the bank’s auto portfolio averaged $50… Continue
Added by Marcie Belles on July 13, 2012 at 2:38pm —
Consumer loan delinquencies fell in the third quarter of 2011, as evidenced by the American Bankers Association's latest Consumer Credit Delinquency Bulletin. Seven of 11 loan categories ― including auto, RV, and marine ― showed slightly lower delinquencies in the third quarter, according to the ABA.
For autos, 30-day late payments fell to 1.15% from 1.23% for direct loans, and dropped to 2.60% from 2.89% for indirect loans. For non-autos, the delinquency rate declined to 1.38% from… Continue
Added by Christina Haberstroh on January 5, 2012 at 1:00pm —
Buying patterns, pent-up demand, and competition can all affect where auto finance is headed in the year to come, but so far, things are looking pretty good.
“There’s a very attractive nature to the landscape, as auto sales in general are expecting growth,” Peter Turek, automotive vice president in TransUnion’s financial services business unit, told AutoFinanceNews.net. “Other segments don’t have the same certainty.”
In its annual national auto delinquency forecast, TransUnion… Continue
Added by Christina Haberstroh on December 15, 2011 at 2:30pm —
Consumer loan delinquencies are still on the rise, as evidenced by the American Bankers Association's latest Consumer Credit Delinquency Bulletin. Nine of 11 loan categories ―including auto, RV, and marine ― showed slightly higher delinquencies in the second quarter, according to the ABA.
For autos, 30-day late payments inched up 3 basis points from the prior quarter, to 1.23%, for direct loans; delinquencies grew to 2.89% from 2.72% for indirect loans. For non-autos, the delinquency… Continue
Added by Christina Haberstroh on October 5, 2011 at 12:30pm —
Loosening credit and increased competition are putting the squeeze on profits. Continue
That was one of the core findings in the Auto Finance Forecast Spring 2011, an exclusive survey conducted by Auto Finance News and sister web site AutoFinanceNews.net. The Auto Finance Forecast gauges activities and sentiments in the automotive lending and leasing market.
With finance companies and banks entering ― or reentering ― the market, the next 12 months will…
Added by Marcie Belles on June 10, 2011 at 2:30pm —
Strong credit fundamentals have compressed auto loan delinquency and loss rates for the past few years. Today TransUnion announced that the national 60-day auto delinquency rate in the first quarter fell to 0.49% ― the lowest level since the company started tracking the variable in 1999. And though bank card and second mortgages default rates have started to tick up according to the S&P/Experian Consumer Credit Default Indices, auto loan defaults fell 2 basis points to 1.45% in… Continue
Added by Marcie Belles on May 31, 2011 at 12:00pm —
A recent survey has noted that consumers are increasingly buying cars because they need them, not because they want them.
Specifically, only 21% of respondents to a study by Chrome Systems, a unit of DealerTrack, said they bought or leased a vehicle this year because they wanted something new, down from 32% in 2009. The No. 1 reason for replacement: their current vehicle was either unreliable or had broken down (26%, up from 19%).
Meanwhile, the American Bankers… Continue
Added by Marcie Belles on October 5, 2010 at 12:00pm —
Consumer loan delinquencies are on the mend, dropping in eight of 11 loan categories, according to the American Bankers Association.
Marine loan delinquencies fell 58 basis points to 1.63% in the fourth quarter of 2009, while bank card delinquencies dropped 38 basis points to 4.39%.
On the auto side, 30-day late payments improved 10 basis points for direct loans, to 2.04%. Remarkably, direct loan delinquencies have declined to below-historical norms.
Added by Marcie Belles on April 8, 2010 at 12:30pm —
Delinquencies are still on the rise for auto financiers, but their pace is slowing.
That was the message from Melinda Zabritski, director of automotive credit for Experian Automotive, in a conference call yesterday detailing fourth-quarter and full-year 2009 auto finance trends.
In a nutshell, the total dollar value of at-risk auto loans dropped 10% to $26.6 billion in the fourth quarter of 2009, from $29.6 billion in the prior-year quarter.
The 30-day… Continue
Added by Marcie Belles on March 10, 2010 at 12:44pm —
The auto loan delinquency rate climbed 8 basis points last quarter to 0.81%, but loan performance appears to have stabilized since lenders implemented stricter underwriting criteria in 2008.
The 60-day delinquency data was compiled by credit bureau TransUnion from a random sampling of 27 million individual credit files.
TransUnion expects fourth-quarter delinquencies to increase to nearly 0.9%, compared with 0.86% at yearend 2008. The uptick, though, is likely attributable… Continue
Added by Marcie Belles on December 1, 2009 at 2:30pm —
When it comes to bolstering car sales, Cash for Clunkers did its job. The federal program sparked 690,000 sales, pushing up August volume to 1.2 million units at a time when monthly volume averaged 860,000 units.
I know a good percentage of those sales were paid for in cash, and the overall credit quality of the buyers was relatively high. But might we start to see higher-than-normal delinquencies among car buyers who financed their C4C purchases?…
Added by Marcie Belles on November 16, 2009 at 1:30pm —
In the past two years, lenders have focused on both retail customers and dealer clients to stem losses and improve operations. Specifically, lenders have tightened underwriting guidelines — raising credit-score minimums, lowering loan-to-value ratios, and shortening loan terms. On the dealer side, financiers are keeping tighter tabs on titling efforts and more closely monitoring dealer stats.
From what I can glean so far, it seems like the consumer-facing changes are working.… Continue
Added by Marcie Belles on October 26, 2009 at 2:36pm —
Despite moves initiated two years ago to tighten underwriting, Brookline Bank
continues to see deterioration in its auto loan portfolio.
The Massachusetts bank reduced originations and targeted higher credit quality borrowers, yet delinquencies continue to climb.
Here are the stats:
• As of Sept. 30, Brookline Bank’s portfolio totaled $566.9 million, with an average credit score of 760. The year prior,… Continue
Added by Marcie Belles on October 16, 2009 at 12:00pm —
LAS VEGAS — Though the auto finance industry has vastly improved in the past year, it is not out of the woods yet. That was the sentiment expressed by senior executives from a host of finance companies during the opening sessions at the Auto Finance Summit yesterday.
Pricing in the capital markets has tightened tremendously, and asset-backed transactions for subordinate loan tranches are starting to get done. Meanwhile, estimates are ticking up for new-vehicle sales volume in 2010,… Continue
Added by Marcie Belles on October 13, 2009 at 10:41am —
Late payments on direct auto loans shot up 98 basis points in the first quarter — nearly 50% — the highest jump for any asset class tracked by the American Bankers Association.
First-quarter direct-auto delinquencies were 3.01%, compared with 2.03% in the final quarter of 2008.
In general, ABA Chief Economist James Chessen said the higher delinquencies are a result of rising unemployment. “The No. 1 driver of delinquencies is job loss,” he said, adding that “delinquencies… Continue
Added by Marcie Belles on July 8, 2009 at 11:30am —
Amid all the worst-is-behind-us sentiments being tossed about these days, auto loan delinquencies are still on the rise, TransUnion says.
In data released yesterday, TransUnion indicated that the year-over-year national 60-day auto delinquency rate increased 27.69% in the first quarter of 2009 to 0.83%. While that is not a terribly high number, TransUnion expects the 60-day delinquency to continue its march higher:
TransUnion's national 60-day auto delinquency rate… Continue
Added by JJ Hornblass on June 16, 2009 at 2:00pm —
Despite a $111.9 million loss, Capital One Financial Corp. saw improvement in its auto finance portfolio in the first quarter.
Cap One Auto Finance earned $71.4 million last quarter — its highest profit since mid-2006 — and the unit was the company’s only lending business to post lower delinquency and chargeoff rates. The improved loan performance comes amid slowing origination volume, which often results in higher — not lower — delinquency rates.
Cap One Auto’s 30-day… Continue
Added by Marcie Belles on April 22, 2009 at 12:05pm —