Auto Loans Getting Healthier: Experian

  • December 9, 2009
A new study suggests the automotive lending industry in the U.S. might have begun to stabilize last quarter. Experian Automotive says the growth rate for 30-day delinquencies has slowed. It rose 5.8% from the third quarter of 2008 to the third quarter of 2009, but that increase is less than the 9.5% growth from third-quarter 2007 to third-quarter 2008, per the firm.

Experian says the average credit score for new vehicle loans in the third quarter of 2009 was 775, up from 762 in the third quarter of 2008. That number suggests lenders are pulling back from riskier loans. Average credit scores for used vehicle loans also rose to 684 in the third quarter of 2009, from 670 in the third quarter of 2008, per Experian. Also, the average new vehicle loan dropped from 63 weeks in the third quarter of 2008 to 62 weeks in the third quarter of 2009.--Karl Greenberg

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