Q1 2016 Delinquency Rates Reach New Highs, TransUnion Reports
High delinquency rates for auto loans and credit cards in the first quarter pushed national average delinquency rates to levels not seen in at least three years, according to TransUnion. Much of the increase can be attributed to the continued slump in oil prices and an increase in loans made to customers with nonprime credit.
CHICAGO — High delinquency rates for auto loans and credit cards in the first quarter pushed national average delinquency rates to levels not seen in at least three years, according to a TransUnion report.
According to the firm, the continued slump in oil prices has negatively affected states, including North Dakota, Oklahoma and Texas, with economies that rely on the energy sector. This slump, the firm said, can be partly blamed for the adverse impact on consumer credit performance for residents of those states.
“Rising delinquency rates in energy-sector states such as Oklahoma and North Dakota are contributing to the uptick in the national delinquency rate for auto loans and credit cards. An increase of loans to nonprime credit risk borrowers also has pushed these delinquency rates up,” said Ezra Becker, senior vice president of research and consulting in TransUnion’s financial services business unit.
He added that “despite the delinquency rises in these credit products, overall levels of delinquency remain relatively low from a historical perspective.
For the first time in five years, auto loan payments 60 days or more past due topped 1%, climbing to 1.12% in the first quarter. Auto loan payments 90 or more days past due increased to 1.47%, a 13.1% increase from the prior-year period and the highest level observed in the first quarter since 2013.
During the first quarter of this year, 76.37 million consumers had an auto loan, an increase of five million from the year-ago period, according to TransUnion. The report found that auto loan originations grew 5.4% year over year to 6.51 million in the fourth quarter 2015, with the average new account balance reaching its highest level since the Great Recession at $20,469.
“For the first time post-Recession, more than 76 million consumers have an auto loan, a promising sign for the remainder of 2016. More nonprime consumers have an auto loan and parts of the country are feeling the impact of lower energy prices, contributing to a mild-increase in delinquency,” said Jason Laky, senior vice president and automotive and consumer lending business leader for TransUnion.
Originally posted on F&I and Showroom
More Dealer Ops

Dealer Debrief: Defection Data & EV Updates
In this week's debrief, host Lauren Lawrence discusses how to use defection data to your advantage and the latest on EV sales and charging infrastructure.
Read More →
How Defection Data is Bridging the Dealership Conversion Gap
Lead volume is flat, cross-shopping is up and brand loyalty is in retreat. As confident sales teams keep losing buyers they thought they had, daily industry sales data is showing dealers exactly where their funnel is breaking and how to fix it without buying a single new lead.
Read More →
Dealer Debrief: Where are you losing customers?
In this week's debrief, host Lauren Lawrence discusses the hidden leaks in dealerships where you might be losing customers without even realizing it.
Read More →
Dealer Debrief: Improving Your Inventory Management
In this week's debrief, host Lauren Lawrence covers a new survey that shows what service technicians really want and two launches that could help improve your inventory and vehicle life cycle management.
Read More →
Ladies and Gentlemen, This Is a Dealership: Why the Fundamentals Still Decide Who Wins
A teaching moment by a legendary football coach happens to apply perfectly in the auto retail space. Learn what it is and how to use it to your store’s advantage.
Read More →
What Market Timing Mistakes Mean for Your Reinsurance Program
When volatility hits, dealer-owned reinsurance programs face a familiar temptation: pull back and wait for calmer waters. New data from BOK Financial shows why that instinct can quietly cost you years of surplus growth.
Read More →
Dealer Ads and the FTC
The agency has made it clear in recent enforcement actions and warnings, in auto retail and other industries, that advertised prices must include all nonoptional costs to the consumer.
Read More →
Used Autos Supply Dwindles
The March shopping surge, despite high prices, cut into inventory by the most since the thick of the pandemic, Cox Automotive analysts calculated.
Read More →
Managing Risk Effectively Through Changing Times
The variables influencing risk pricing have changed significantly over the past five years. Being proactive and responsive to emerging trends is not optional but essential.
Read More →
Survey Reveals What Won't Fix What's Breaking Car Sales
AutoPayPlus says extra-long auto loans are trapping consumers and threatening the dealer trade-in cycle, and that the industry is leveraging the wrong tools to combat high MSRPs.
Read More →
