Those car industry experts who see the glass as half empty when it comes to the economic recession may need to think about a change of tune, reports the Wall Street Journal. In the second quarter of 2010, the rate of car loan late payments fell considerably for those consumers late by 60 days or more. News like this and the reduction of credit card payment delinquencies is the kind of good news TransUnion should be happy to proliferate.
Rainy time preserving makes recovery slow
Fewer consumers have been willing to plunk down their incredible shrinking dollars on big ticket purchases like automobiles, which has been less than stimulating for prospects of an economic transformation. Yet it has been a good for car loan repayment habits, claims Peter Turek of TransUnion.
”Although part of the reason for the transformation in late payment quotes is the influence of new, lower risk loans, consumers don’t see a quick fix to the short-term economic and employment situation,” exclaimed Turek.
2nd quarter figures were 20% better than the last
Consumers 60 days late or more on their vehicle loans fell by .53. According to the Journal, this was a 20 percent over Quarter 1 late payment rates. Moreover, the decrease is one of the most significant to occur since the summer of 2001. Rhode Island, Utah and Montana really displayed an increase in frequency, when Vermont showed the most improved payment performance. The Maple Syrup state experienced nearly a 50 percent drop, from 1 percent to .58 percent. In the category of “It’s expensive to live in paradise,” Hawaii showed the greatest drop within the origination of car loans. Milking old vehicles for every little thing they’re worth is probably less costly than getting a gallon of milk in Hawaii, anyway.
But the news isn’t all good. TransUnion recognizes a .6 percent increase in auto loan late payment rates by year’s end. The waves of heavy holiday spending will no doubt play a role.
Wall Street Journal
online.wsj.com/article/BT-CO-20100830-703526.html
No comments:
Post a Comment