Auto loans, delinquency rates increase between second and third quarter

Automotive sales have been on the rise throughout the past several months, and many debt collection agencies are reaping the benefits. According to a recent report by TransUnion, the third-quarter auto loan delinquency rate jumped to 0.38 percent, up from its second-quarter mark of 0.33 percent. "Since TransUnion began tracking the auto loan delinquency rate in 1999, we have observed a seasonal increase in this variable every year between the second and third quarters," said Peter Turek, automotive vice president of TransUnion's financial services business unit. "Seasonal factors include consumers balancing increased spending due to back to school needs and holiday purchases." Auto loan origination grew as well, achieving a 16 percent year-over-year growth in the second quarter, while the average person's auto debt rose 5 percent compared to the third quarter of 2011. According to another recent report by Equifax, auto loan origination from January to August hit 14.6 million, the highest total in five years, with new auto loans reaching a six-year high. The study also found the average loan amount from January to August to be $19,494, the highest total since 2006.