Late Auto Loan Payments Continue To Rise In 4Q, Could See Highest Level On Record By Year-end

[Purveyor]

Source: Associated Press

NEW YORK (AP) — The percentage of auto loans past due 60 days or more rose 8.9 percent in the fourth quarter of 2008, compared with the prior-year period, according to credit reporting agency TransUnion. And the numbers point to auto delinquencies shooting to their highest point in a decade by the end of the year.

The rate rose to 0.86 percent for the three months ended Dec. 31, compared with 0.79 percent in the 2007 fourth quarter.

Auto-loan delinquencies tend to be cyclical, with the fourth quarter typically showing the fewest problematic payments. But the recession appears to be changing those patterns.

"Certainly the overall economy, the weak labor markets, disposable income, are all affecting auto debts as well," said Peter Turek, automotive vice president in TransUnion's financial services group.

Delinquencies were highest in Mississippi, at 1.62 percent, followed by California, at 1.46 percent, and Louisiana, at 1.37 percent. The states with the lowest auto-loan delinquency rates were Alaska, at 0.19 percent, North Dakota, at 0.34 percent and Wyoming, at 0.41 percent. In all, 10 states are above the national average and 30 are below it.

Read more: http://www.whotv.com/business/sns-ap-auto-loans-delinquency-rates,0,5046792.story

[Submariner]

1. I'm on the road in hotels and am amazed at the Repo-reality shows

I'm seeing on TV. So much of this car repossession is going on, it's probably going to get violent. Nasty stuff.

[Hawkeye-X]

2. My car was paid off at a modest 2.9% interest rate for 5 years.

Loan was paid off last November. We celebrated.

Now, my car's breaking down. Had to replace one burnt out lightbulb on the rear of my car, and now I need to find a place that can repair power locks cheaply (Dealers love to charge an arm and a leg for the repair).

Hawkeye-X