Although the U.S. auto market is finally showing signs of bottoming out, the delinquency rate on new car loans has jumped to a record high. Per a new American Bankers Association report, 3.42 percent of all indirect auto loans are 30 days past due while 3.01 percent of all direct loans are past due – that latter a new record for the ABA.
During the first quarter of 2008, only 2.03 percent of direct auto loans were 30 days past due. However, that figure jumped to 3.01 percent during the first quarter of 2009 – marking the first time that figure has crossed the 3 percent mark – reflecting the large number of U.S. job losses.
“The number-one driver of delinquencies is job loss,” James Chessen, the ABA’s chief economist, told Automotive News. “When people lose their jobs, they can’t pay their bills. Delinquencies won’t improve until companies start hiring again and we see a significant economic turnaround.” About 6 million Americans have lost their jobs since the start of the recession.
The 3.42 percent delinquency rate of first quarter indirect auto loans is actually a slight improvement over the fourth quarter of 2008 (3.52 percent), but is still close to the record high. Last year was also a record-setter for vehicle repossessions with 1.67 million cars repossessed.
07/07, 6:02 PM
posted by:
mayer_ray_nagin
Can I beat the crap out of an Automotive Delinquent like I can out of a Juvenile Delinquent?
07/07, 6:19 PM
posted by:
Madcapp
I’d love to see a breakdown based on ethnicity.
07/07, 6:48 PM
posted by:
ihustle
Lets keep it civil madcapp hahaha
07/07, 7:20 PM
posted by:
shaver
Billy Mays was are only hope of turning sales and the economy around. All is lost.
07/07, 7:21 PM
posted by:
Lariat Luxury Locomotive Liner No.3
Don’t worry the government will bailout those delinquent customers…err…maybe…never mind. I forgot the government only bailouts poorly-run-way-past-their-prime large automotive manufacturers. How about those year-end automotive executive bonuses at the end of 2009? I bet those will be hefty now that taxpayers are footing the bill.
07/07, 7:57 PM
posted by:
mayer_ray_nagin
Dont worry Shaver, we still have Vince. The Chevy Silverado Slap-Chop Edition!
07/07, 7:57 PM
posted by:
carstuff
Bonus’s come at end of first quarter.
07/07, 8:06 PM
posted by:
Lariat Luxury Locomotive Liner No.3
Thanks carstuff, as I can’t wait to see how they do!
07/07, 8:13 PM
posted by:
sprockkets
All these stupid new adverts giving breaks to people who lose their jobs means nothing when we are in the midst of the worst part of the recession, and those can’t buy a car anyhow. It does nothing to people who bought cars years earlier and now are facing repossession.
07/07, 9:46 PM
posted by:
johnnycanuck
The Slap-Chop is Vince’s thing? I always pictured Lorena Bobbitt.
07/07, 10:55 PM
posted by:
mayer_ray_nagin
It’s true, Johnny. Here’s the Silverado ad ….
http://i87.photobucket.com/albums/k148/WaaaaHoooo/autos/ChevySlapChop.jpg
07/07, 11:33 PM
posted by:
johnnycanuck
Has anyone else ever noticed how he looks like a real life version of Beavis?
07/08, 8:37 AM
posted by:
Need more oil for GM
No surprise here. Anyone who is stuck with an import probably doesn’t want to pay another cent for a POS vehicle. They should do the right thing and dump it at their local General Motors store for a real vehicle.
GM. AN American Revolution
07/08, 9:33 AM
posted by:
non_biased_enthusiast
Impressive NMOFGM, you manage to get dumber and dumber with each post. I had no idea you could get to such levels of stupidity, thanks for proving me wrong.
07/08, 9:51 AM
posted by:
slider5634
“Impressive NMOFGM, you manage to get dumber and dumber with each post. I had no idea you could get to such levels of stupidity, thanks for proving me wrong.”
Word. Amazing also how he managed to completely change the subject to something completely unrelated and tried to tie it in with this. I hate to say it, but as much BS as that was, I’m going to give him an A for effort on that one. I don’t know too many people that could pull that off so gracefully.
Back on topic… Looks like the economic situation is only getting worse little by little. I’d be interested to see what these statistics look like right now in other countries as a comparison.
07/08, 10:15 AM
posted by:
armstealer
Actually there might be a hair of truth to what NMOFGM says today, only reversed in my situation.
You see, if I had one of those Direct loans I probably would have left my ‘06 Solstice at the dealership last time I had it in for service, and just stopped mailing the check.
I have a loan through a local bank though, and I am not sure that they would know what to do with it if I left it in their parking lot and deposited the keys in the ATM.
THAT, and I would much rather F pontiac (back) than F my bank.
07/08, 10:33 AM
posted by:
mayer_ray_nagin
I wanna F one of my bank tellers.
07/08, 11:48 AM
posted by:
RaineMan
I think the middle class are the only ones getting F’ed by any of this.
07/08, 12:12 PM
posted by:
sprockkets
Chase Auto finance has also stopped its program to lower monthly payments by rewriting the loan. How nice of them.
07/08, 4:41 PM
posted by:
ricky_b
Anyone here watch Operation Repo on TRU TV?