Car loan delinquencies have risen significantly from the same time last year, a new report by Experian Automotive, an Irish market intelligence firm with U.S. headquarters in Costa Mesa, Calif.
Month-long delinquencies rose 3.7% while 60-day delinquencies grew 8.6%.
"While we have observed a rise in delinquencies over the past few quarters, it was to be expected due to the growth in subprime loans. We have to keep in mind that a majority of the market is still in the prime risk category," Melinda Zabritski, Experian's senior director of automotive credit, said in a statement.
Mississippi and Washington, D.C., had the highest delinquency rates for 30 and 60 days respectively. The total national balance for auto loans grew by approximately $86 billion, to $870 billion.
What the report characterizes as "deep subprime" loans grew 27 basis points, to 3.84%, while Experian said "super-prime" loans grew 34 basis points from the same time last year to 20.6%.
"As long as consumers continue to do a good job of making their auto-loan payments on time and lenders keep a close eye on how rates fluctuate year over year, the industry should remain relatively stable," Zabritiski said.
