Those car industry experts who see the glass as half empty when it comes to the economic recession may have to consider a change of tune, reports the Wall Street Journal. That’s because a TransUnion study has indicated that delinquency rates for consumer auto loans that are at least 60 days past due decreased substantially within the second quarter of 2010. TransUnion has just been full of good news since they announced a drop in credit card payment delinquency. Resource for this article – Auto loan delinquency rates on the decline, says TransUnion by Car Deal Expert.

Customers who turn into frugal slow down the turnaround

Automobile buying has been slow to pick up, considering that so numerous consumers are focusing on preserving to live through the economic recession. But car loan repayment stats reflect a bright side of these dark economic times, claims Peter Turek of TransUnion.

”Although part of the reason for the turnaround in delinquency percentage is the influence of new, lower risk loans, consumers don’t see a quick fix to the short-term economic and employment situation,” exclaimed Turek.

A 20 percent decline is a large raise above the first quarter

Consumers 60 days late or more on their auto loans fell by .53. As outlined by the Journal, this was a 20% over Q1 delinquency rates. That’s the largest drop since summer 2001, writes the Wall Street Journal. Vermont came out on top when it comes to most improved payees, while Rhode Island, Utah and Montana came out on the bottom. The Maple Syrup state experienced nearly a 50 percent drop, from 1 percent to .58 percent. On a parallel note, Hawaii’s rate of loan origination was lowest in the study. This could possibly be because prices within the island paradise are high all around, so old cars are being driven to the ground.

But the news isn’t really all good. TransUnion sees a .6 percent increase in auto loan late payment rates by year’s end. The probable cause would be the anticipated weight of holiday spending.

Additional reading

Wall Street Journal

online.wsj.com/article/BT-CO-20100830-703526.html