Auto Loan Delinquencies Down

It is a sure sign of an increasingly better recession, or something of that ilk – for the number of auto loan delinquencies has gone down. With the whole mortgage and loan crisis that we have been facing over the past few years, it has seemed like we would never see the bottom of the barrel. Yet, there are still some that say that we have not hit rock bottom yet.
 
But according to a recent study, the economy must be on the mend as auto loans are being paid much more than they have been. Those auto loan payments that were thirty or more days past due have dropped in eight of eleven categories, which is a really good sign. According to the American Bankers Association, the auto loan delinquency trend is simply getting better.
 
They say that this is the second quarter in a row that they have seen a decrease in the number of people who are delinquent with their auto loans, and they are excited by the trend as they are seeing it. Delinquencies on direct auto loans that come from consumers are down 10 points, and indirect auto loans – through auto dealers – were unchanged. This means that those auto loans that are directly coming from banks to the consumer that requested them are being paid much more than they were before. This is surely a good sign for the auto loan industry, and a promise of a better next quarter as well.

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