Auto Loans – Falling Farther Behind
From TransUnion:
The percentage of auto loans past due 60 days or more rose 8.9% in the fourth quarter of 2008, compared with a year earlier. That’s according to the credit reporting agency TransUnion.
Auto-loan delinquencies tend to be cyclical, with the fourth quarter typically showing the fewest problematic payments. But the recession appears to be changing that.
“The overall economy, the weak labor markets, disposable income, are all affecting auto debts as well,” said Peter Turek, automotive vice president in TransUnion’s financial services group.
Since the recession began in December 2007, auto loan delinquencies have jumped 25 percent, compared with a 10 percent increase in the 2001 recession, Turek said. He expects they will rise at least another 15 percent before peaking.
This is yet another indication of the depth and seriousness of this deep recession the country is gripped in. Credit and loan defaults are occurring in many sectors all across the nation, a very worrisome trend that has not yet showed any signs of slowing down.
Die ex-onomic Machina 
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