Auto delinquencies tick up

According to TransUnion, the number of US consumers with an auto loan grew 7.8% at the end of 2015, the largest year-over-year increase since it began tracking the data in 2009.

In the fourth quarter of 2015, 75.6 million consumers had an auto loan, up from 70.1 million in 2014, and the average debt per borrower was $17,999, an increase of 3.1% over the year-earlier period.

“Originations and balances have grown to the level where they are outpacing auto sales as more consumers choose to finance rather than pay cash for their vehicle,” Jason Laky, senior vice president and TransUnion’s auto and consumer lending business leader, said.

Delinquency rates increased almost 7% to 1.24% during Q4 2015 as compared with the same time period in 2014, when they stood at 1.16%. That was the highest level since the fourth quarter of 2010.

The company also reported there were 1.21 million additional subprime consumers with auto loans than at the end of 2014.

“We remain in a low-delinquency environment but have observed pockets of pain in states with large exposure to the energy industry,” Laky said. “Lenders should be mindful of different economic impacts and employment levels in various regions of the US.”