Nearly everyone in America with a car loan is making the payment on time, the Detroit Free Press is reporting.

A scant .36 percent of people with a car loan are 60 or more days behind on making their payment, according to a TransUnion report looking at the January through March quarter of auto loan payments. That means more than 99-percent of customers borrowing cash for cars are on time.

The tiny percentage, which represents a drop of about 27 percent year-over-year is the lowest since TransUnion started tracking it in 1999.

The fall in loan delinquency, however, may not be great news for banks overall. TransUnion attributes some of the on-time payments to recession weary consumers placing a priority on their car payment while foregoing payments on credit cards and underwater homes.


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    • 1 Second Ago
  • 26 Comments
      JF
      • 3 Years Ago
      Or it could be attributed to buyers finally getting smart and buying cars they can *actually* afford.
      Smooth Motor
      • 3 Years Ago
      All the deadbeats have been taken out of the equation with stricter credit requirements. It looks like only the people responsible enough to get loans now have them...which is good.
      John Hughan
      • 3 Years Ago
      Yay for it being news that Americans are actually fulfilling their contractual obligations?
        • 3 Years Ago
        @John Hughan
        [blocked]
        • 3 Years Ago
        @John Hughan
        [blocked]
      Schadenfreude
      • 3 Years Ago
      I'll stick to leasing.
      AcidTonic
      • 3 Years Ago
      Good. Now that the risk has fallen I expect to see interest rates on auto loans drop.... Riiiiight? Or does it really not work both ways?
        mapoftazifosho
        • 3 Years Ago
        @AcidTonic
        I got 1.9% from my credit union...the only way to get lower is to get 0% from a manufacturer on cars that aren't in the highest demand...
          AcidTonic
          • 3 Years Ago
          @mapoftazifosho
          you're -> your. Long day.
          ack154
          • 3 Years Ago
          @mapoftazifosho
          I'll second that. Rates are pretty ridiculously low right now. Not really too much farther down to go.
          AcidTonic
          • 3 Years Ago
          @mapoftazifosho
          Shhh, you're logic is ruining my sarcasm! :)
          Carlos Cruz
          • 3 Years Ago
          @mapoftazifosho
          VW gave me 2.4%, which is great because all of my friends in my same age group (low 20s) are in 8-12%
        axiomatik
        • 3 Years Ago
        @AcidTonic
        I've got 0 percent. Can't get any lower than that, unless they start paying me to buy their car. (if you take inflation into consideration, they kind of are)
      CEC
      • 3 Years Ago
      The average car loan payment is $460 a month. If you took $460 a month and paid that into a good growth stock mutual fund from the ages of 25 to 65 the equals almost 3 MILLION DOLLARS. If you pay yourself that car payment every month, instead of giving it to a bank, you can retire a millionaire!!!!! Imagine being able to retire and not need the governments help, what a novel idea huh? Only stupid finance car loans, I can say that because I use to be a stupid person, and then I quickly learned that interest can be your friend if you learn how to earn it, instead of paying it. AN INTEREST PAYMENT IS WHAT KEEPS THE MIDDLE CLASS IN THE MIDDLE, NOT THE GOVERNEMENT!!! Until people learn this, they will never be wealthy.
        Willie
        • 3 Years Ago
        @CEC
        I get what you're saying CEC (my friend is a financial advisor and talks like you), but I still need to get to work between those years so that I can even continue to earn a living to pay myself that "$460" a month. My job also requires me to drive to our different sites so I can't just use public transportation. You can't just generalize and deem us all "stupid" for financing a car. There are certainly more than one way to retire a millionaire.
        Jonathan Arena
        • 3 Years Ago
        @CEC
        Right. But even better, if I never left the house but to WALK to work (because I had no car), ate ramen noodles every day, and entertained myself by walking to the free library for 50 years, I would retire with MULTIPLE MILLIONS!!! Big deal. So what are you going to do with your pile of money when you are old and decrepid and weird because up until that point you haven't lived your life?
          CEC
          • 3 Years Ago
          @Jonathan Arena
          Get this, I'm going to be selfless and give it all away by the time I die. Give it to people who need it, and who know how to use it properly, and give tons of it to charities my wife and I support. Jonathan, if you think I don't have a life because I just sit around, I thought I would let you know for vacation this fall my family and I are going on to Australia/New Zealand area for a month. We plan on site seeing the first week, and then attending as many Sprint Car races as we can the rest of the month. As a CANCER SERVIVOR I've seen death, and I know how to live my life. Hell, because I'm doing because I'm living while not paying anybody that doesn't need to be, I'm doing a better job of it then you are. My family even drives nice (07 and newer) used cars (do you really think the only way you can buy a nice car is by going to debt? That is sooo sad if you do, but I wouldn't be surprised if you do, I used to be that dumb too.) BTW my family's income is less then 75,000 a year. We, by no means, make tons of money. If it weren't for overtime and extra jobs we would make less then 55,000. We can do this because we are debt free and EARN interest, instead of pay it to banks.
        Pavel
        • 3 Years Ago
        @CEC
        Yes in theory - is that inflation adjusted.......... ? And how confident are we really in the stock market?
        mikemaj82
        • 3 Years Ago
        @CEC
        who the hell pays $460 a month for a car? I have a Corvette and my payments are $320.
          CEC
          • 3 Years Ago
          @mikemaj82
          You completely missed the point of my post. Your stupid $320 payment would be just over 2 million dollars. I hope you enjoy your dumb corvette, when you could be a multi millionaire when you retire.
          Jonathan Arena
          • 3 Years Ago
          @mikemaj82
          Someone who wants something nicer than a 15 year old, $17,000 corvette.
      British_Rover
      • 3 Years Ago
      Towards the end of 2008 I saw people making well into the six figures with 800 plus credit scores have loan applications denied. These were for sub 20,000 used cars too not expensive vehicles at all so If you were not perfect you were not getting a loan. Not all banks pulled back that hard but a few did. A score below 700 meant you could not get financed and 700 is not a bad score at all it just isn't great. So just to repeat what other people said people with weak credit couldn't get bought so now most of the loans that have been generated in the past four years are people with solid credit.
      RocketRed
      • 3 Years Ago
      How would TransUnion know what else people are spending their money on? The theory that people are not paying their mortgages to pay their car loans is laughable. I guess some people figure they can just sleep in their cars. Its more likely that between 2008 and now people in real trouble had their cars repossessed. That's four years ago. People with loans now, of the usual five-year stretch, probably got into to those cars affter the credit market collapsed, blocking all but the most qualified. Which is what Car Guy said. This is consistent with the used car market exploding this period---people no longer able to buy a car of the desired size and type new on credit. This is on balance a good sign. It's a sign of consumer de-leveraging, of increased employment, improved quality of loan-based securities on the capital markets, or all of the above.
      • 3 Years Ago
      [blocked]
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