Auto Delinquencies Remain Remarkably Low
(Credit and Collection News) – TransUnion says auto delinquencies of 60-plus days accounted for 1.23% of the amount outstanding as of the end of the second quarter. That’s an improvement over a delinquency rate of 1.51% a year ago, in the depths of coronavirus-related business shutdowns.
Auto delinquencies remain remarkably low, and on par with pre-COVID levels, despite the short but deep recession last year and lingering unemployment, according to the latest TransUnion Credit Industry Insight Report, for the second quarter of 2021.
“Overall, there’s really a continued rebound with regard to the primary indicators we look at: originations, balances, delinquencies,” says Matt Komos, vice president of research and consulting at TransUnion, the Chicago-based credit bureau.
“Consumer demand has gotten strong, even with rising vehicle prices, and shortages from the chip standpoint that affect the supply situation – and which drive up prices,” Komos says in an Aug. 17 phone interview.
According to the report, auto delinquencies of 60-plus days accounted for 1.23% of the amount outstanding as of the end of the second quarter. That’s an improvement over a delinquency rate of 1.51% a year ago, in the depths of coronavirus-related business shutdowns.
It’s also flat vs. 1.23% in the second quarter of 2019. “Credit performance continues to really shine,” Komos says. “We’re kind of back on par, from a pre-pandemic standpoint.” TransUnion auto credit statistics include new and used, loans and leases.
