Study shows problem auto loans on the rise
Posted on October 13th, 2008 • by Bill Cawthon
According to a study coming out today, more Americans are having trouble paying off their car notes. The Wall Street Journal reported on a study by Experian Automotive that will be released at the Automotive Finance Summit in Las Vegas. The study shows nearly $25 billion in auto loans are past due. During the second quarter of 2008, lenders reported the number of loans 30 days past due was up nine percent compared to a year ago. Delinquencies of 60 days, generally the last step before repossession, increased by eleven percent.
In a troubling sign, the creditworthiness of people with existing loans is declining. Experian says about 57 percent of borrowers with open loans have prime credit. Just two years ago, that figure was 61 percent.
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