FI showroom red and grey logo
MenuMENU
SearchSEARCH

Auto Delinquencies Becoming More Predictable, Says TransUnion

Pete Turek wasn’t surprised by his company’s report on fourth-quarter 2008 delinquency rates, which showed year-over-year increases. In fact, the senior executive at TransUnion said the numbers are becoming more predictable.

by Staff
March 17, 2009
2 min to read


Pete Turek wasn’t surprised by his company’s report on fourth-quarter 2008 delinquency rates, which showed year-over-year increases. In fact, the senior executive at TransUnion said the numbers are becoming more predictable.

Between the third and fourth quarters 2008, delinquencies increased from 0.8 percent to 0.86 percent, according to data recently release by TransUnion. Year-over-year, the delinquency rate increased 8.86 percent in the fourth quarter.

Ad Loading...

Turek attributed the increases to several factors, such as seasonal dependencies and the current lending environment. He also pointed to the battered economy, mortgage crisis and the weak labor market as major contributors.

“In reviewing the data, there’s no real surprises,” Turek said. “Most people marked the beginning of recession at December 2007. From December 2007 to the end of 2009, we’re looking at a 40 percent increase in the number of delinquencies. We’ve already experienced more than half of that increase through the fourth quarter [2008].”

Turek expects the delinquency rate to increase to 1.13 percent by the end of the year, a “highwater mark” for auto loan delinquencies.

While the predicted rate is a significant number, Turek pointed out that 30 states and the District of Columbia were below the national average delinquency rate.

“It’s good for consumers. They’re very resilient and they’re figuring out ways to stay current on their auto loans,” Turek said.

Ad Loading...

Ranking states by delinquency rates, the top 10 states with the highest rates were those hit hardest by the mortgage crisis or are still recovering from Hurricane Katrina. Mississippi topped the list with a rate of 1.62 percent, followed by California at 1.46 percent.

Rounding out the list of troubled states were Louisiana, Alabama, Georgia, Florida, Tennessee, Nevada, Arizona and Hawaii.

Additionally, TransUnion reported that average auto debt nationally decreased slightly in the fourth quarter from $12,861 to $12,713. Year-over-year auto debt also fell to 0.2 percent, which Turek said wasn’t a surprise.

“That was expected that average auto debt would go down. You heard about a lot of folks not buying autos or lenders not making a lot of loans in the fourth quarter,” Turek said. “I would not be surprised if average auto debt continues to go down.”

More Auto Finance

Photo of document next to calculator and inkpen
Auto FinanceJuly 20, 2026

Dealerships Are Paying the Price for Extended Car Loans

Growing negative-equity scenarios mean such lengthy terms should be addressed in a forward-looking way to make them work for the dealer and the consumer down the road.

Read More →
silver car in background with hand in front holding out a set of keys, Trade-In Trouble, F&I and Showroom
Auto Financeby Lauren LawrenceJuly 20, 2026

Trade-Ins in Negative Equity Reach New Heights

As such trade-ins rise in frequency, so do monthly loan payment amounts and interest rates, according to second-quarter data compiled by Edmunds.

Read More →
Two men in suit jackets shaking hands in front of a new-looking white vehicle
Auto Financeby Hannah MitchellJuly 15, 2026

Auto Credit Plentiful

June numbers show lenders are readily granting access, including to risky borrowers, as consumers leverage themselves to take on high prices.

Read More →
Ad Loading...
Woman's hands holding an wallet empty of cash
Auto Financeby Hannah MitchellJuly 1, 2026

Automotive Consumers Sink Further in Debt

Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.

Read More →
Three men smiling for headshots
Auto Financeby Lauren LawrenceJuly 1, 2026

Porsche Financial Services Shifts Structure

After 36 years with Porsche, the Financial Services Chief Financial Officer Konrad Riedl is retiring, and the department is realigning its management structure.

Read More →
$100 bill and magnifying glass on top of paper that says insurance policy terms and conditions.
F&Iby Lauren LawrenceJune 29, 2026

Tariffs Could Raise Insurance Premiums

As U.S. import tariffs affect repair costs, consumers might find it more affordable to replace a damaged vehicle, according to recent Insurify tariff analysis.

Read More →
Ad Loading...
Red toy car sitting on top of coins.
Auto Financeby Lauren LawrenceJune 24, 2026

Smaller Loans, Longer Terms

The youngest generation of car buyers is more likely to finance less expensive vehicles, more than half of generation Z consumers borrowing less than $25,000.

Read More →
Photo of man holding a car key
Auto Financeby Hannah MitchellJune 17, 2026

New Cars a Tad More Affordable

May averages show that combined circumstances gave auto consumers slightly better buying power for the month, though average prices were up year-over-year.

Read More →
Photo of a white toy car next to piles of coins
Auto Financeby Hannah MitchellJune 8, 2026

First-Quarter Sees Long Auto Loan Growth

Experian data show more consumers are tapping the method, along with refinancings, to afford buying. Meanwhile, subprime borrowers are getting more access.

Read More →
Ad Loading...
Assurant, Mastering Credit Friction, Sales Series, Expert Trainer Josh Krach
Auto FinanceMay 29, 2026

Mastering Credit Friction

In this video, Josh Krach explains how to turn credit friction into an advantage.

Read More →