Auto Loan Delinquencies May Be On the Rise

According to a recent report auto loan delinquencies are going to be higher next year. They reached record highs this year, but experts say next year will be worse. According to the credit unions, they have seen a steady growth in their numbers for auto loan delinquencies and they expect the trend to continue.
 
With the economy in the state that it is in, and the numbers being what they are in terms of bankruptcies, etc. it is no wonder that people are starting to let their auto loans slide. What we have been seeing is people unable to pay their mortgage but they were still paying for their car loans as they had to have a way to get to their jobs. Now that many people are unemployed, paying for that car loan has become a choice of paying that or something else.
 
When you are faced with either paying for your auto loan or food on the table, you have to choose and food will always come first. The credit unions said that they had watched this same trend with the mortgage industry and now the auto loan industry is following the same path. They say that they do think that the increase in auto loan delinquencies will be a slow but steady pace, but it will be an increase nonetheless.
 
GMAC Financial Services has already reported an increase in their auto loan delinquencies, and TransUnion is reporting that they expect to see the highest number of increases in Mississippi, Georgia and Alabama.

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