Auto Loan Non Payments Rising

The number of people not paying their car loans these days is sharply on the rise. It would seem that as people are trying to figure out what to pay in their monthly bills that their auto loan is not at the top of the list. According to a recent study, the auto loan industry is really starting to feel the pinch.

Nearly $25 billion in auto loans are past due according to a recent study by Experian Automotive. Auto loan lenders saw an increase in the number of car loans that are now more than 30 days past due, and an even larger increase in the number of auto loans that are more than 60 days past due.

Those that are not paying are increasing monthly, with 9% more than 30 days and 11% more than 60 days. Not only that but only 57% of car loan holders are at a level that is considered prime credit rating. Just two years ago they saw a 61% level for the same credit rating. The nation is feeling the economic pinch and the auto loan industry is simply the latest to truly be affected by it.

Experts say that in no way does the auto loan industry’s troubles equal that of the mortgage crisis, but with less people paying those mortgages they are less likely to pay their auto loans as well. The delinquency rate might be on the rise for auto loans, but it is still much lower than the rate for housing.



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