Auto buyers are doing “an excellent job” of keeping current on their loan payments, a significant improvement from just a few years ago when delinquencies and repossession rates were soaring, noted a major credit tracking service.
Experian Automotive reports consumers continued to make timely automotive loan payments during the second quarter of 2012, lowering the average delinquency rate across all lending organizations, including banks, captive finance arms, finance companies and credit unions.
The falling delinquency rate has encouraged automakers to take on more “sub-prime” loans in recent months, broadening the industry’s sales base. It’s also helped reduce losses at companies such as Ally Bank, formerly GMAC, Ford Motor Credit and GM Financial and other captive auto finance companies.
via Bottom Line.