Auto Loan Default Rate Up Slightly in August, S&P/Experian Says
Data from the S&P/Experian Consumer Credit Default Indices indicated that the auto loan default rate inched up from July to August.
NEW YORK — Data released by S&P Indices and Experian revealed that the auto loan default rate inched up from 1.27 percent in July to 1.31 percent in August. All other default rates, including bank card and mortgages, either fell or remained relatively flat during the time period.
"While there were some moderately mixed results, the overall picture is broadly optimistic," says David M. Blitzer, managing director and chairman of the Index Committee for S&P Indices. "Mortgages and auto loans all saw declining or stable default rates and are posting rates below 2.5 percent, some even below 1.5 percent. Again, good news for the consumer."
Bank card default rates decreased in August to 5.26 percent from July's 5.64 percent, while first and second mortgage default rates remained relatively flat, according to S&P/Experian.
Consumer credit defaults varied across the five major Metropolitan Statistical Areas (MSAs) reported in this release each month, with Miami realizing its lowest default rate in August since October 2007 at 4.52 percent. New York's default rates remained flat at 1.80 percent, while Chicago, Dallas and Los Angeles decreased moderately in August to 2.43 percent, 1.51 percent and 2.07 percent, respectively, from 2.54 percent, 1.60 percent and 2.15 percent in July.
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