Today, Experian released their analysis of the current automotive credit trends for the fourth quarter of 2012. What they found was very interesting considering the upward state the industry has been in as of late.
For the first time in quite a while, there was a rise in delinquencies. Being late by 60-days increased from the same quarter in 2011. It rose from .72 to .74 in Q4 of 2012. That kind of increase in loan delinquencies hasn’t occurred since 2009.
Still, Experian assures that it’s nothing to worry about. “Overall, our Q4 analysis shows that the auto lending market is extremely health,” said Melinda Zabritski, Experian Automotive’s direct of automotive credit. “Of course you never want to see an increase in delinquencies, but when you take a step back and look at the market compared to where it was three years ago, we still have remarkable stability.”
A way to look at this increase is due to more loans being issued. When the finical crisis hit, banks reeled in their lending in fear of the market. Now that things have finally rebounded for the better, banks have reopened that door and are letting people in. There’s been a rapid increase in the amount of people asking for a receiving auto loans. In fact, the market of auto-loans has been one of the fastest growing parts of consumer-finance recently.
Interested in getting an auto-loan for a vehicle? Contact us at Bayside Chrysler Jeep Dodge and find out how we can help. We love to say yes! Browse our new and pre-owned inventory online. Like us on Facebook and follow us on Twitter for more news and monthly offers.