Autoblog

More Americans paying their car loans on time

Scott Burgess — Thu, 24 May 2012 14:31:00 EST

Filed under: Car Buying, Earnings/Financials

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.

More Americans paying their car loans on time originally appeared on Autoblog on Thu, 24 May 2012 14:31:00 EST. Please see our terms for use of feeds.

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Chrysler Financial to begin lending once again for Chrysler vehicles?

Zach Bowman — Wed, 21 Jul 2010 17:20:00 EST

Filed under: Car Buying, Chrysler, Earnings/Financials

Chrysler Financial hasn't been doing a whole lot since the domestic automotive implosion of aught-nine. When the Obama Administration's Automotive Task Force found that the lender didn't have the wherewithal to continue making large loans to dealers, GMAC was forced to take over lending duties for Chrysler. Part of that decision was due to the fact that last year, used car values were at one of their lowest points in decades. Since the majority of Chrysler Financial collateral involves used cars and trucks, that was a bit of an issue at the time.

But that was then and this is now. Used vehicle values have rebounded in a big way, and as such, word has it that Chrysler Financial is once again looking into making large-scale loans to dealerships across the country. Word has it that Tom Gilman, Chrysler Fianancial's chief executive officer, has been contacting numerous dealerships in order to get a feel for whether or not there's enough interest for the institution to return to lending, according to Automotive News. Even so, with most dealers now cozy with GMAC, it may be difficult for Chrysler Financial to reestablish itself as the titan it once was.

[Source: Automotive News - sub. req'd.]

Chrysler Financial to begin lending once again for Chrysler vehicles? originally appeared on Autoblog on Wed, 21 Jul 2010 17:20:00 EST. Please see our terms for use of feeds.

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

Chris Paukert — Tue, 24 Mar 2009 09:01:00 EST

Filed under: Car Buying, Trends, Etc., Earnings/Financials

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]

Surprise! Credit agency says Michiganders have lowest average auto loan balances of any state originally appeared on Autoblog on Tue, 24 Mar 2009 09:01:00 EST. Please see our terms for use of feeds.

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Senate approves tax break for new car shoppers

Chris Shunk — Wed, 04 Feb 2009 06:29:00 EST

Filed under: Government/Legal

The economic stimulus bill just got a whole lot more interesting for automakers and car buyers alike, as a proposal to make interest on auto loans deductible has been voted in. The proposal, which was championed by the National Automotive Dealer Association, was voted in by a bi-partisan 71-36 vote. If the $800 billion stimulus bill passes the Senate and this provision survives, car buyers will be able to write off auto loan interest on their taxes, saving about $1,500 on a $25,000 car purchase. The new legislation will mark the first time since 1986 that car buyers will be able to write off their car loan interest. It's likely that automakers will shy away from 0% financing in the future and offer more cash rebates for slow-selling models (read, all models) so customers can maximize their savings.

Lawmakers and NADA are hoping the provision will help generate interest in new car purchases, but some detractors feel more should be done up front to encourage car-buying. That may be true, but after looking at January's sales figures, we're guessing that automakers aren't going to look a gift horse in the mouth.

[Source: Automotive News, sub. req'd]

Senate approves tax break for new car shoppers originally appeared on Autoblog on Wed, 04 Feb 2009 06:29:00 EST. Please see our terms for use of feeds.

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Report: Owners of American cars more likely to default on loans

Siddharth Raja — Wed, 15 Aug 2007 10:02:00 EST

Filed under: Car Buying

Findings from a recent study could potentially change the way banks pick interest rates for new car loans. The study, run by Penn State's Smeal College of Business professor Brent Ambrose, found the probability of car owners defaulting on their loans was actually affected by the make of the model.

Looking at the outcomes of 6,996 car loans between January 1998 and March 2003, researchers found that owners of European and Japanese brands were 50% and 56% respectively less likely to default on the their loans compared with owners who bought American. Basically, the eggheads are saying that loans for American brands should have higher interest rates than foreign brands to compensate for the higher default risk. Saturn was one of the worst performers in the survey, with the average owner of a Saturn 22 times as likely to default on a loan as a Toyota owner.

The research has the potential to see lenders judge loan costs by the make and model of a car, just as insurers do when calculating premiums. The news is sure to be a blow to the already struggling Detroit 3, but, we suspect any changes to lending criteria are still some way off.

[Source: Smeal College of Business via Wired]

Report: Owners of American cars more likely to default on loans originally appeared on Autoblog on Wed, 15 Aug 2007 10:02:00 EST. Please see our terms for use of feeds.

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GM intros incentives for full-size trucks

John Neff — Tue, 08 May 2007 19:04:00 EST

Filed under: Car Buying, Truck, Chevrolet

This is possibly the least shocking news of the day when you consider that the housing market, which fuels the full-size pickup segment, is in a slump and gas prices are rising once again. Nevertheless, General Motors must respond to market pressures, and in the wake of Silverado sales that fell 7% last month (that's the all-new, winner of the Motor Trend Truck of the Year, critically acclaimed Chevy Silverado), has decided to offer some new incentives to spur sales of Chevy's new truck and its mate, the GMC Sierra. From now through July 9th, customers can get zero-percent financing for 36 months or reduced-rate financing for 60 months on either model. If you're paying cash on the spot, GM can instead offer you $1,250 cash back on the Silverado or $1,500 on the Sierra.

Don't feel bad GM, Toyota has seemingly been offering incentives in one form or another on its new Tundra since the day it was born, and sales of the Ford F-150 fell 12% last month according to Automotive News. See? It's not just you.

[Source: Automotive News, sub. req'd]

GM intros incentives for full-size trucks originally appeared on Autoblog on Tue, 08 May 2007 19:04:00 EST. Please see our terms for use of feeds.

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