Auto Loan Delinquency Low

 
According to Fitch Ratings, auto loan delinquencies have hit a two year low, making both the finance companies and the auto makers very happy. According to the report these auto loan delinquencies have been one of the biggest problems in the economy, right there with those that have had to default on their mortgages. The number of cars that have had to be repossessed was at an all time high there for awhile as people could just not afford their auto loans because of job losses or increasing mortgage payments.
 
The report says that although the auto loan delinquencies have dropped the number of bankruptcies and unemployed have continued to be too high for comfort. They said that “consumer confidence hit a two year high” for last month and many of them received their tax returns as well. They said that with this influx of cash that it would have behooved many of them to turn to their bills and try and get caught up – so many auto loans were probably paid that would not have normally been.
 
They said that although this was a positive month for auto loans that they do expect that number to go back up next month when there aren’t as many tax returns coming in. Without that push for cash, they are sure that the number of delinquencies for auto loans will increase again, and then hopefully start to drop when the economy gets into better shape – and more people are able to get back to work.

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