The delinquency rates for auto loans fell during the second quarter of this year, as more consumers are paying back owed amounts quickly to lenders. Additionally, loan conditions are improving for borrowers, as companies begin to use alternative credit
data to extend funds to individuals. Recent research by a leading credit bureau revealed that amounts are being paid back in a timely manner as both 30-day and 60-day delinquency rates decreased. The 30-day rate fell to 2.52 percent, down from Q2's percentage of 2.59. The rate for 60-day delinquencies was at 0.60 percent at the same time last year, and decreased to 0.58 percent in the past few months. Repossessions from loans not paid have seen a 27.9 percent drop year-over-year. Industry experts say these numbers are a good indicator of the improving economy and the growing optimism that both lenders and consumers have. Another reason for the decreases could be because many lenders are loosening their requirements for auto loans, reports The Associated Press. Subprime borrowers are especially benefiting from the surge in lending, as many companies now look at alternative credit reports to determine the creditworthiness of a consumer. Lower interest rates are being offered as businesses regain confidence in the economy and borrowers' ability to pay back loans, states the news source.