Surprise! Credit agency says Michiganders have lowest average auto loan balances of any state

With today's dire economic climate, it should come at no surprise that delinquencies on automotive loans climbed last year. But what's perhaps counter-intuitive is, despite a particularly acute financial crunch, Michigan's residents owe less on their car and truck loans than their counterparts in any other state. In fact, 35 states have a higher delinquency rate than Michigan, according to the latest findings of TransUnion, one of the country's largest consumer credit agencies.
In a news blurb in the Detroit Free Press, TransUnion president Peter Turek reasons that the reality behind the perception disparity is likely the result of many Wolverine state residents having access to special discounts afforded to auto company employees and their friends and families.
According to the Freep, Nevada residents have the highest balance owed on its vehicles ($15,225), while Michigan owners carry the smallest balance (at an average of $11,009), and the latter's 60-day delinquency is 0.68 percent, well below chart-topping Mississippi and its 1.62 percent tally.
[Source: Detroit Free Press | Image: Justin Sullivan/Getty]












Reader Comments (Page 1 of 2)
Hiro11 9:09AM (3/24/2009)
Goddamn, that picture makes me cringe. My fellow Americans: please, for the love of all that is holy, lose some weight. If you can't lose weight, don't wear a tucked-in polo that's tighter than a sausage casing and blinding white sneakers. Just. Don't. Do it.
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Tecmec 9:32AM (3/24/2009)
Wow, that's the first thing I noticed too. I was hesitant to be the first comment though....wtf? That's disgusting.
rob rudorf 9:44AM (3/24/2009)
the minute that hog signs the papers for the mustang he'll think he is a Tom Selleck clone behind the wheel. Thats what cars are for, right?
superman211 11:17AM (3/24/2009)
+100!
That was gross! I am a very buff 19 year old and as an American I get lumped into a category of fat ugly losers.
That will be my reason when I leave the USA; "There where too many fat people"
Jon 12:04PM (3/24/2009)
Who the hell cares, do you act the same when people have AIDS or any other disease. I'm sick of people micromanaging everyone else's life
And if you're leaving the US for fat people, you'll be in for a big shock in other countries. Be sure to avoid the UK if you don't like hogs passing for women
tekd 2:13PM (3/24/2009)
While obesity is a worldwide problem I find it amazing the number of Americans who'll go and whine about freedom when other people trying to take away their trans fats and make them exercise.
Nobody would need to even bug people about these things if they didn't decide to exercise their freedom by sitting on their asses drinking 64oz double gulps from 7-11 and growing into the size of a whale, then end up in the ER needing 5 people to come lift them onto a hospital bed so you can waste taxpayer money to keep you alive.
Freedom isn't the freedom to go and become a morbidly obese diabetic guys.
Polly Prissy Pants 3:29PM (3/24/2009)
If you really want to legislate away all the things in this world that put you in an early grave then let's also outlaw smoking, and drinking, and unprotected sex. Let's also make it illegal to spend less than an hour a day in a gym doing cardio. And heck, why stop there. Why not simply sterilize anyone with a hereditary disease? All current medical research suggests it's largely the same thing.
I also wonder how you'd come off if it was a picture of a cancer patient and you whined about how bald heads disgusted you. Or someone with psoriasis and you commented that he wouldn't have a problem if that dumbass just got some ointment. That's how most educated people view you now.
And for the record, as with smoking, obesity likely saves you money in the long run: http://content.nejm.org/cgi/content/full/337/15/1052.
Brody 9:11AM (3/24/2009)
Pointless story, so what. I bet this is because almost everyone works for the auto company's and has been receiving employee pricing for years.
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Yikes 9:53AM (3/24/2009)
That is exactly what I thought when I read the article.
And with USA tax payers sending billions upon billions to Detroit, they should all have free cars.
Mazda FTW! 10:00AM (3/24/2009)
Yikes - How many billions were sent to New York City? (and other financial HQ city)
rickhamilton620 9:13AM (3/24/2009)
LMAO!
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rickhamilton620 4:23PM (3/24/2009)
That was meant to be a reply to Hiro11....darn comment system...
BigMcLargeHuge 9:36AM (3/24/2009)
I'd be curious to know what the average loan amount was for cars at the start.
A lot of money pours into Nevada from other states. So they probably take out, on average, higher-priced car loans.
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Tagg 9:49AM (3/24/2009)
Lately everyone in the country has received employee pricing.
Pretty much since 9/11 incentives have been really high with employee pricing plans and super low interest rates. Yes it has not been constant but since that period there have been some major incentives. So I don't buy that argument 100%. There maybe a hint of the culture of Michigan. People still really love their cars and it's not an appliance like it's becoming in other states.
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KLR 10:29AM (3/24/2009)
Michigan has always been a fairly financially conservative state, the people, the businesses, and the banks.
Despite the huge mess here with unemployment and foreclosures the state based banks and credit unions, with few exceptions, are solid. Plus, I think people here are a little more car knowledgeable and attentive to maintenance so aren't afraid to hang onto older vehicles until body rot wins or to buy older used cars cheap. My current everyday car, is a 1997 Escort wagon with 143K miles on it bought about two years ago for $1,600 with another $400 put into it. For that plus routine maintenance I expect to get another 100,000 miles out of it to match it with the 1994 Escort wagon that topped 250K miles before I got rid of it. (No, I don't make big bucks.)
MajorGeek 9:50AM (3/24/2009)
Costanza!
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BirdmanSTX 9:53AM (3/24/2009)
... he's not gonna fit in there. Right now he's trying to decide whether to finance that seat belt extender...
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Kyle 10:02AM (3/24/2009)
Whenever I read the word "Freep" I think "Free Republic," the racist website. Might just wanna type out "Free Press" as Freep is pretty widely known as short for Free Republic.
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notYou 5:17PM (3/24/2009)
Kyle: "Whenever I read the word "Freep" I think "Free Republic," the racist website"
I know it's fashionable by liberals and progressives to just toss hate speech labels out there against anything they disagree with, but could you cite some examples to substantiate your allegation?
Frank 11:56AM (3/24/2009)
From the Free Republic website http://www.freerepublic.com/home.htm:
Free Republic does not advocate or condone racism, violence, rebellion, secession, or an overthrow of the government. Free Republic advocates a return to constitutionally limited government, reserving all government powers not expressly delegated by the constitution to the United States to the States respectively, or the people, emphasizing sovereign state governments, local government, self-government and self-rule, while restricting government powers to only those enumerated in the constitution and maximizing individual rights and liberty as originally envisioned and established by our Founding Fathers and secured and defended by the blood of patriots and statesmen for over two hundred years.
"We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness. — That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, — That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness."
— The Declaration of Independence, In Congress, July 4, 1776
Is this the "racist" site you are referring to???