Americans are quickly improving the rate at which they default on automotive loans, according to statistics released Tuesday by credit bureau TransUnion. The number of U.S. consumers doing so in the first quarter of 2010 dropped by 18.52 percent compared to the last quarter of 2009.
TransUnion also reported that the statistics varied by state, with Louisiana and Alabama seeing the most frequent car loan defaults and Alaska, Montana, and North Dakota seeing the fewest. Alaska remained at the bottom of the list for the quarter despite being one of just four states to see increases during the time period, according to TransUnion.
The company's automotive vice president for financial services, Peter Turek, said that "as we noted last quarter, part of the reason for the turnaround in delinquency rates is the influx of new, lower risk loans. Furthermore, this downward trend was energized by first-quarter improvements in economic factors such as consumer confidence and savings rates, which demonstrated consumer willingness to focus on debt obligations."
The statistics from TransUnion could be a sign that the checking accounts of U.S. consumers are getting healthier in the wake of the recession, experts say.
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