This video has a truck in it, but it may be the wrong video for this post. Enjoy!
Borrowers who took out auto loans over the past year are missing payments at the highest level since the recession, fueling concerns among regulators, analysts and some in the car industry that practices that helped boost 2014 light-vehicle sales to a near-decade high could backfire. It’s clear that credit quality is eroding now, and pretty quickly.
More than 2.6% of car-loan borrowers who took out loans in the first quarter of last year had missed at least one monthly payment by November, the highest level of early loan trouble since 2008, when such delinquencies rose above 3%, according to an analysis of data performed for The Wall Street Journal by Moody’s Analytics. The uptick comes amid an increase in subprime auto loans, raising concerns that car buyers may have taken on more debt than they can handle. For that set of borrowers, defined as consumers with a credit score lower than 620, loan performance also is deteriorating.
More than 8.4% of borrowers with weak credit scores who took out loans in the first quarter of 2014 had missed payments by November. That was the highest level since 2008, when early delinquencies for subprime borrowers rose above 9%.
SOFIBlog.com ... 352-324-6042 Florida 