Expect Auto Loan Growth Throughout 2015
Better employment picture will boost the auto industry, forecast says.
Auto loan debt per borrower will continue on an upward trend, rising to $18,244 at the end of 2015, according to TransUnion.
That would make 19 consecutive quarters of increases since the first quarter of 2011, when auto loan debt per borrower stood at $14,954.
The TransUnion forecast calls for the national auto loan delinquency rate (the ratio of borrowers 60 or more days past due) to end 2014 at 1%, and increase slightly to 1.27% at the end of 2015.
"We expect the auto loan market to continue to perform exceptionally well in 2015, with more sales leading to continued increases in auto loan debt per borrower as the national portfolio gets younger on average," says Peter Turek, automotive vice president in TransUnion's financial services business unit.
TransUnion anticipates the economy will continue to improve in 2015, with a better employment picture boosting the auto industry.
Improving labor markets, higher incomes, and pent-up demand led to fast credit union loan portfolio growth in the third quarter, Mike Schenk, vice president of CUNA's economics and statistics department, writes in February issue of Credit Union Magazine.
Loans grew 10% in the year ending September 2014—the highest level since 2005. And new vehicle lending leads credit union loan growth with a 6.2% quarterly increase and an eye-popping 19.2% increase during the past year, Schenk writes.
(Via News Now)