The firm showed that 30-day delinquencies increased by 5.8 percent when comparing the third quarter of 2008 to the same time in 2009. While that does mean more people are having trouble paying off their auto loans, it also represents a decreased rate of growth. For example, the growth of delinquencies from the third quarter of 2007 to the same time in 2008 was at 9.5 percent.
“While higher-than-average delinquency rates are still with us, and may be for some time, the fact that the rate of increase is slowing is definitely some positive news for an industry that hasn’t had much as of late,” Melinda Zabritski, director of automotive credit for the firm, said.
Along with consumers trying to pay off their bills on time, the amount of credit they have in things like car loans saw a recent increase. The Federal Reserve recently reported that nonrevolving consumer credit increased at an annual rate of 2.6 percent in October.
Nonrevolving debt has seen both increases and decreases in recent months. For example, the first quarter of 2009 saw it go up at an annual rate of 0.2 percent, while the second quarter saw it decreased 1.9 percent. In the third quarter nonrevolving credit dropped 0.9 percent.
This is in contrast to revolving consumer credit, which has seen decreases since the fourth quarter of 2008. In October, revolving consumer credit went down at an annual rate of 9.3 percent, furthering a trend that shows consumers may be trying to pay off their debt.
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