Late-payment rate on US auto loans rose in 2Q

Staff Writer
Columbus CEO

As U.S. sales of cars and trucks have grown this year, so has the late-payment rate on auto loans.

Credit reporting agency TransUnion said Tuesday that the rate of U.S. auto-loan payments late by 60 days or more rose to 0.95 percent in the second quarter. That's up from 0.87 percent a year earlier, but down from 1 percent in the first quarter.

The increase follows strong growth in auto sales, which has fueled a rise in auto lending, including to more borrowers with less-than-perfect credit.

Americans also are carrying higher loan balances.

Auto loan debt per borrower grew 4.1 percent to $17,090 in the April-June period from a year earlier.

Auto loans tend to have higher balances early on, which contributes to more auto loan debt.