60-day auto loan default rates fall in the second quarter
Experian recorded a 60-day failure rate of 0.41 percent in the second quarter, slightly below the 0.44 percent observed in that 2020 period. That was an improvement from the 0.62 percent prior to the coronavirus pandemic in the second quarter of 2019.
The analytics firm found that 99 percent of the auto loan accounts paid out in the first quarter remained current.
Experian has seen an increase in 30-day outages, from 1.26 percent in the second quarter of 2020 to 1.31 percent in the same period this year. In the second quarter of 2019, the rate was 2 percent.
“Overall, delinquency has really improved compared to previous years,” says Melinda Zabritski, Senior Director of Automotive Financial Solutions at Experian. said in a webinar Accompanying the publication of the dates August 19th.
Zabritski said these results conflicted with the increase in lending that her lender had predicted in talks months ago.
“We just didn’t see that,” she says.
Delinquency also tends to decline during tax season as Americans receive refund checks, Zabritski said. It is possible that Americans will fall behind more in the future, but “we just haven’t seen it yet”.
Dan Bucherer, AFSA’s communications director, said Aug. 18 that Americans tend to prefer car loans to bills when money is tight.
“You have to go to work,” he said.