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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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2010 Archives
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