Auto loan delinquencies in the fourth quarter hit their highest level since the financial crisis, a report out Thursday revealed.
About $23.27 billion in loans were 30 days or more late as of Dec. 31 — a whopping 14 percent increase from the year earlier and the most since the $23.46 billion in the third quarter of 2008, according to the New York Federal Reserve.
Delinquencies have moved up as the credit quality of the loans has deteriorated and the length of the auto loans has increased — sometimes to 84 months. [...] Delinquencies are the canary in the coal mine when it comes to losses for carmakers.
[...] The average monthly car payment in the fourth quarter rose above $500 for the first time, according to the credit-rating agency Experian.
(Score: 4, Interesting) by Thexalon on Saturday February 18 2017, @03:04PM
When state governments started cracking down on abusive payday loans, many of the companies that used to be payday loan companies suddenly became auto title loan companies instead. With the same ridiculous interest rates that the people taking out the loan could never afford. And poof, you get an uptick in auto loan defaults.
The only thing that stops a bad guy with a compiler is a good guy with a compiler.