Consumers take on more auto loans, better at handling payments
Posted on Tuesday, December 18, 2012 at 4:42:08 PM
Consumers improved the ways in which they handle credit so far this year and these trends are expected to continue in 2013.
During the fourth quarter of 2012, the nationwide auto loan delinquency rate improved to 0.36 percent, down from it's peak of 0.86 percent in the final three-month period of 2008, according to a report from TransUnion.
"The national auto loan delinquency rate should stay relatively low throughout 2013 as the economy continues to improve," said TransUnion's automotive vice president Peter Turek.
Meanwhile, the average auto loan size also increased significantly so far this year, the report said. During the third quarter, the average individual amount hit $13,571, up from $12,902 a year earlier.
As auto loan delinquency rates continue to improve and consumers become more willing to take on debt, this could result in additional auto financing activity in the near future. Prior to applying for a line of credit with Home Loan Investment Bank, consumers should make sure their finances are in the best possible shape.