SCHAUMBURG, Ill. (5/27/14)--Despite a slight drop in 60-day auto-loan delinquencies at the national level, 22 states across the country witnessed delinquency levels rise in the first quarter, according to data released last week by Experian.
Delaware experienced the most drastic jump, climbing nearly 10% year-over-year, while the national average dipped by 1.7%.
Montana rose by 8.9%, Nebraska by 7.9%, Iowa 6.6% and New Jersey 5.8%, to round out the top five states of increased levels of loan delinquencies.
"Consumers overall are doing a better job of paying their auto loans on time," said Melinda Zabritski, Experian senior director of automotive credit. "However, it is evident that consumers in some states are struggling to meet their payment obligations. It is important for consumers to keep in mind that paying bills on time is one of the most essential factors when lenders are evaluating who gets the best rates and terms when applying for a future loan."
Despite the 60-day delinquency numbers, 30-day delinquencies nationwide dropped 5%, with only six states showing increased levels.
The report also found that repossessions had jumped 36.5% overall in the first quarter, fueled largely by financiers who provide the majority of their loans to credit-challenged customers.
Total dollar volume for auto loans came in at $811.3 billion, the report found; the highest total since 2006 when Experian began publicly tracking these numbers.
All lender types, meanwhile, saw growth in year-over-year quarterly loan volume, with credit unions up by $23 billion.