Auto Loan Delinquencies Drop for First Time Since 2007
SCHAUMBURG, Ill. — American consumers are doing a better job of making payments on their auto loans as delinquencies on 30- and 60-day loans fell in the first quarter of 2010, according to Experian Automotive.
The 30-day delinquency rate fell 1.06 percent from the first quarter 2009 to first quarter 2010 (2.82 percent to 2.79 percent), according to Experian Automotive’s analysis of the automotive finance market as of the first quarter of 2010. The 60-day delinquency rate fell from 0.79 percent in first quarter 2009 to 0.78 percent in first quarter 2010.
“As we look for positive economic trends related to consumer behavior, the drop in automotive loan delinquencies is a step in the right direction,” said Scott Waldron, president of Experian Automotive. “A healthy lending industry is ultimately an important pillar of a healthy auto industry. When fewer people are delinquent on payments, it is good for lenders, which should translate into positives for the auto industry down the line.”
Despite the drop in loan delinquencies, lending institutions are still taking a cautious approach to their lending strategies. The average credit score for a new-vehicle loan in the first quarter 2010 was 776, up three points from the first quarter 2009. In addition, the percent of near prime, subprime and deep subprime loans for new vehicles dropped from 17.99 percent in the first quarter 2009 to 16.86 percent in the first quarter 2010.
“It is very clear that lenders continued to take a disciplined approach to new vehicle loans in the first quarter,” said Melinda Zabritski, director of automotive credit for Experian Automotive. “As a whole, lenders remain much more risk-averse than they were two or three years ago. However, financing is still available for some customers in higher-risk tiers. Automotive retailers might need to look a little harder and might need to educate their customers about changes in loan terms, but it is still possible to get these consumers into a vehicle.”
Other findings include the following:
The overall finance market has remained stable, with growth occurring in prime segments (total prime market up 2.55 percent).
The average credit score for used vehicle loans rose to 665 in Q1 2010 from 661 in Q1 2009.
The states with the highest average credit scores for new vehicle loans were Minnesota (805), Wisconsin (797), Iowa (795), Colorado (791) and Connecticut (791).
The states with the lowest average credit scores for new vehicle loans were Mississippi (752), Texas (754), Louisiana (754), Nevada (755) and West Virginia (760).
More Industry

Autos More Appealing
Consumers gave new cars better scores again this year for design, performance and more as mass-market brands kept gaining on premium lineups, JD Power found in an annual poll.
Read More →
Used EVs Defy Overall Market
While the used-car market saw three months of price declines or stagnation, the used EV segment did the opposite – rising for three straight months.
Read More →
Gone to the Dogs
A Stellantis brand decided to have some fun with one of its SUVs’ design to address growing emphasis on family pets.
Read More →
OEM Poll Sees Industry Evolution
Kerrigan Advisors’ survey of automakers finds that tariffs, technology, network tightening and other factors are poised to reshape auto retail.
Read More →
Luxe N.C. Dealerships Change Hands
A collection of Italian and English brand franchises were handed off to the owner’s friend in the business and include the Carolinas’ only Ferrari retail stores.
Read More →
Exposure Drives Interest in Chinese Cars
At a recent demonstration, consumers had the chance to ride in a Chinese-branded vehicle, a firsthand experience that improved their perceptions and purchase intent.
Read More →
Automotive Consumers Sink Further in Debt
Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.
Read More →
Agent Advocate
Rob Mancuso, who comes from a long line of auto dealers, values general agents’ place in the industry and makes a case for them taking an even bigger seat at the table.
Read More →
Driving Under Distraction
Though consumers gave higher marks to new vehicles in JD Power’s most recent initial-quality poll, high-tech interference worsened, pointing to craving for simplicity.
Read More →
Affordable New Cars a Thing of the Past
More than one out of five new vehicles sell for more than $60,000, according to Edmunds. That's up 7% compared to prepandemic 2019.
Read More →