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An estimated $25 billion in U.S. auto loans are delinquent, according to a report released this week by Experian Automotive, yet another sign that cash-poor Americans are struggling to repay their debts.
Auto loans 30 days past due in the second quarter jumped 9% from the year-ago period, while auto loans 60 days past due increased 11%. About 57% of borrowers with open loans have what is considered a prime credit rating, down from 61% two years ago, an indication that problems in the auto loan sector could worsen.
The overall delinquency rate on auto loans is still considered manageable, with less than 4% of 30-day or 60-day loans past due. In total, about 64 million auto loans worth $795 billion were listed as outstanding in the second quarter, Experian reports.
The share of loans extended by captive auto-finance companies, meaning those affiliated with an automaker, has dropped nearly five percentage points in two years to 31% of all loans. These companies still account for the largest share of auto loans, followed by banks, credit unions and financing companies.
