Auto delinquency rate to level off in 2011

The rate of auto loan delinquencies is expected to level off in 2011, thanks to increased car buying and auto loans received by consumers. ABC News reports that auto lending increased by 28 percent during the fourth quarter of 2010, compared to the same quarter in 2009. Additionally, banks are maintaining a lending rate in step with consumer demand, which should help diminish the amount of delinquencies. "The banks and credit unions now have the money to lend," Peter Turek, automotive vice president for TransUnion's financial services group, told ABC. "We're even hearing about subprime lending going up. There's finally demand for new autos." News of a stabilizing auto lending market comes after all the major American car makers experienced double-digit gains in U.S.-based sales in February. General Motors' sales jumped 49 percent, while Toyota's increased by 42 percent. Enticing lending and financing opportunities are reportedly responsible for the market's growth. Delinquency rates for Q4 2010 stood at 0.59, down from 0.81 from the fourth quarter of 2009.