Short-term auto delinquency rate on the decline

New data from Experian reveals that the auto lending market is improving, following the release of the company's quarterly report on the industry. According to Experian, the rates on both 30-day and 60-day delinquencies fell by 9.7 percent and 15.2 percent, respectively, during the fourth quarter of 2010. For 30-day rates, the total slipped to 2.9 percent overall, while 60-day delinquencies fell to approximately 0.8 percent. Another sign of improved lending came from the amount of loans issued to new vehicle consumers with weaker credit. Experian found that lending rate had jumped by 18.2 percent between Q4 2009 and Q4 2010. "The automotive credit market showed a significant improvement year over year during the fourth quarter of 2010," said Scott Waldron, president of Experian Automotive. "Consumers are definitely doing a better job of making their payments on time, and that bodes well for everyone in the automotive and automotive credit businesses." However, credit scores took a step back among new vehicle buyers. Experian found the average score for that segment of consumers slipped eight points to 767 between Q4 2009 and Q4 2010. In comparison, the average score of used vehicle buyers dipped one point to 679 during the same span.