Auto loan delinquency rate rising

Auto loan delinquency rates jumped nearly 13 percent in the last year to close the third quarter of 2014 at 1.16 percent.

During the same quarter that ended on Sept. 30, auto loan debt rose for the 14th straight quarter to an average $17,352, according to TransUnion, the credit and information management company.

The latest TransUnion auto loan report also found that delinquency rates increased most for those under the age of 30, which saw a nearly 18 percent jump.

The auto loan delinquency rate represents the ratio of borrowers 60 days or more delinquent on their loans.

'The auto loan delinquency rate is rising, but it remains well below levels observed just a few years ago,” said Peter Turek, automotive vice president for TransUnion. 'With nearly 5 million more auto loan accounts reported in the last year and with continued sales strength in this sector, it's not unusual to see an increase in the delinquency rate.

'As long as delinquency rates remain around 1 percent, we don't anticipate seeing a material change in auto lending strategies.”

All but two states - Hawaii and Oklahoma - experienced an increase in auto loan delinquency rates between the third quarter of 2013 and the same quarter of 2014. The largest delinquency increases occurred in Nebraska, South Carolina and New Mexico.

Auto loan balances rose in every state between the third quarter of 2013 and the same period this year. Among the largest U.S. cities, Phoenix, Atlanta and Chicago saw the largest yearly auto loan debt rises of approximately 5 percent.