Auto Loan Delinquencies Decline

Despite the economic problems in the slow recovery of the national economy – a high foreclosure rates, more unemployment – consumers are still behind on their car loans.

In fact, car owners even better about paying their auto loan payments on time.

That’s the latest news from Fitch Ratings, a company record and analyze financial data. According to the company, delinquencies on prime loans for American cars in May to their lowest level in three years hit.

However, the news was not all good. An official with Fitch, quoted in the Wall Street Journal, warned that the auto loan payment could rise again late in the summer months. That is when the effects of tax returns can wear, but consumers in the short extra cash.

The official also highlighted the depressing fact that unemployment remains too high and that the consumer bankruptcy filings rose to a two-year high in May These factors, the official told the Wall Street Journal, would a higher arrears on loans for cars lead in the future.

For now, though, let’s enjoy the good news. We’re still not getting nearly enough of in today’s economy.

According to Fitch Ratings, the percentage of prime-rated auto loans delinquent at least 60 days was 0.51 percent in May That is a good figure. How good? It is 30 percent lower than where it stood one year ago, and it also has the lowest crime rate that has since June 2007.

Now if only consumers were so good with their mortgage loans. RealtyTrac.com, a provider of foreclosure data, reported that one in every 400 homes in the United States a sort of foreclosure filing received in May That is actually a bit like some of the highlights of foreclosure filings that the nation saw in 2009, but it is still too high.

There are two ways to look at the differences between the delinquency rates on car loans and foreclosures. It is easier to pay car loans. Their payments are usually lower each month, but there is something about a car: U.S. consumer confidence on their cars that do more than any other country. For many consumers, losing a car means they can not get to and from work.

No wonder so many consumers are so diligent about paying their car loans on time, even if their other loans fall into crime.