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Late payment rate on auto loans at 13-year low

May 25, 2012
The rate of late payments for auto loans fell nationally in the first three months of the year to the lowest level in more than a decade, the Associated Press reports.
What’s more, the improved record comes despite lenders having written more loans to high-risk borrowers.
In the first quarter, the rate of U.S. auto loan payments at least 60 days overdue declined to 0.36 percent, a 27 percent reduction from the same period last year, according to credit reporting agency TransUnion.
TransUnion called the rate the lowest since it started tracking auto loan data in 1999. The highest rate recorded by the company was 2.39 percent in the first quarter of 2000.
The Auto loan delinquency rate has fallen on an annual basis for 10 consecutive quarters, the AP noted. One big reason is that after the recession, many borrowers made paying off car loans a top priority.