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Equipment Finance News Auto loan default rates buck trend Published: 3rd February 2015 Share Auto loan default rates fell at the end of last year, the only loan category to show an improvement in default rates, according to data released by S&P Dow Jones Indices and Experian. The S&P/Experian Consumer Credit Default Indices continued to show an overall increase in default rates in December. The national composite posted a default rate of 1.11%, up four basis points from November 2014. Only the auto loan default rate decreased, down three basis points to 1.02%. In contrast, the first mortgage default rate rose five basis points to 1.02% in December, its largest increase since September 2013. The second mortgage default increased by 11 basis points to 0.59%. The bank card default rate also increased from its historic low in November, up six basis points to 2.65%. “December was the fifth consecutive month with increasing national consumer credit default rates,” says David M. Blitzer, managing director and chairman of the index committee for S&P Dow Jones Indices. “Increases also occurred in some recent months in mortgages and auto loans. While the economy is strengthening and consumer spending is gaining, wages have shown little growth.” “The large drop in oil prices benefits consumers’ disposable income and should limit consumers’ financial stress. Default rates remain very low but could be a cause for concern if the rising trend gains strength,” Blitzer added. Pat Sweet Correspondent - Asset Finance Connect Sign up to our newsletter Featured Stories NewsEvolving roles of banks and independents in US Corporate Member NewsAssociated Asphalt secures funding from Paragon Bank NewsDutch leasing market sees robust growth in H1 2024 Equipment Finance