Despite auto loan balances rising by $101 billion, delinquencies remained flat from a year ago. Officials with the credit reporting agency said their seeing controlled and deliberate growth by lenders.
Despite an unprecedented rise in student-loan balances over the past decade, a new TransUnion study found that student loan obligations have not inhibited younger consumers’ ability to access and repay other consumer credit categories such as auto loans.
The millennial generation is the fastest-growing segment of auto loan consumers, representing 27% of total auto loan originations in 2014, according to data from TransUnion.
TransUnion’s annual auto loan forecast calls for auto loan debt to rise to $18,244 by the end of 2015. This would mark 19 consecutive quarters of increases since the first quarter of 2011.
Since 2011, auto loan debt per borrower has increased 13%, according to Transunion. The firm also reported that delinquencies experienced a sharp drop from 2013's end-of-year quarter.
According to TransUnion, the auto loan delinquency rate increased to 1.04 percent in the third quarter. However, the delinquency rate is still well below the third quarter average observed between 2007 and 2013.
TransUnion and Carfax have partnered on a new vehicle history scoring model designed to help finance sources predict credit risk on auto loans.
New York Gov. Andrew Cuomo is demanding that credit bureaus give special allowances for Hurricane Sandy victims. The credit reporting agencies, however, say they are already doing their part.
A new survey from TransUnion indicates that credit union execs are targeting auto loans to fuel their growth this year. One reason cited by executives is delinquencies remain at historic lows.
TransUnion's Pete Turek issued his 2013 auto finance predictions this week. He expects the delinquency rate to remain consistent and debt per borrower to jump.
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