Tag Archives: Hold

Auto loans outstanding surpass $1 trillion, delinquencies hold flat; ‘no score’ segment improves

Auto loan balances reached $ 1.008 trillion in the third quarter, an increase of $ 101 billion since the end of the same quarter last year, according to Trans Union.

The credit reporting agency said auto loans delinquent 60 days or more remained flat in the third quarter vs. the year-earlier period at 1.2 percent. Another 5 million consumers opened an auto account since the third quarter of last year, bringing the number of consumers with accounts to about 75 million.

Jason Laky, senior vice president and automotive business leader for Chicago-based TransUnion, said that in addition to the strong auto market, there is increased confidence in the strength of the U.S. economy from consumers and auto lenders. He cited a strong October U.S. jobs report in which the unemployment rate hit a 7.5-year low and average hourly earnings rose 9 cents.

“This reflects the continued growth of not just the auto industry and auto loans but of the U.S. economy as a whole,” Laky told Automotive News.

The auto industry is on pace to set an annual U.S. sales record in 2015 after October’s annualized sales rate came in at 18.23 million. According to General Motors, the six-month rolling average of the SAAR sits at 17.8 million, which would top the all-time high of 17.4 million light vehicles sold in 2000.

The robust auto sales are being driven in large part by high demand for light trucks. U.S. sales of those vehicles topped 8.1 million this year through October, up 12 percent from the first 10 months of last year, according to the Automotive News Data Center. Total U.S. light vehicle sales were 14,508,443 through 10 months this year.

Growth of average balances slows

Laky said in a statement that although consumers are taking on more auto debt, he sees “no cause for concern as delinquencies remain steady” and the growth rate of loan balances slows.
Trans Union said the average loan balance across all auto loan accounts was $ 14,515 in the third quarter, a 2.7 percent rise from the same period in 2014, the slowest growth rate since the fourth quarter of 2011. The average auto loan balance for consumers in the subprime risk category rose 4.2 percent to $ 13,890 in the third quarter, the slowest growth rate since early 2012.

Trans Union reported average auto loan balances one quarter in arrears. In the second quarter of 2015, the average balance on a new auto loan jumped to $ 20,016, an increase of 2.9 percent, or $ 567, from the second quarter of 2014. New subprime auto loan balances rose 3.7 percent to $ 17,357 in the second quarter, the slowest pace since 2012.

Even as balances rise, consumers are taking charge of their loans, Laky said. “More consumers have access to auto loans, yet delinquencies remain low as they continue to responsibly manage their payments,” he said in the statement.

Subprime auto loan balances account for $ 154 billion, or about 15 percent, of the $ 1 trillion in total loans outstanding. Consumers in the “prime or better risk” tiers represent $ 670 billion of the total balance. Trans Union defines subprime loans as those to consumers with credit scores below 601 and “prime or better risk” loans as those to consumers with scores higher than 661.

Originations hit all-time high

New auto loan originations, which Trans Union also reported one quarter in arrears, reached 7.3 million in the second quarter of 2015, exceeding 7 million for the first time, Trans Union said.
Young people are financing at a “healthy pace,” Trans Union said. The number of consumers under age 30 with an auto loan or lease grew 9.6 percent in the third quarter from a year earlier to 11.7 million, according to Trans Union.

“It’s a sign that even in this sharing economy, young people see the importance of having a car,” Laky said.

Meanwhile, older consumers also are playing a part in healthy loan growth, Laky said. Nearly 16 million consumers age 60 and older have open auto loans or leases as of the third quarter, an increase of 500,000 people from the second quarter of this year.

Laky said older drivers are ideal customers for lenders because they can feel confident loans will be repaid. Consumers 60 and older had the lowest delinquency rate among any age group at 0.56 percent in the third quarter, according to Trans Union.

‘No score’ segment improves

Meanwhile, Equifax said today that auto lenders are making sure that customers with no credit score have the financial ability to pay their auto loans by using alternative data and by verifying income and job tenure using employment data services rather than relying just on consumer-provided pay stubs.
The credit bureau said auto originations to consumers in the “no score” segment of the credit spectrum are performing better than they have in the past. The median write-off rates for “no score” originations from 2012-14 are 22.8 percent lower than they were from 2007-09, Equifax said.

“Alternative data, verified income and other new tools to evaluate this very fast growing ‘no-score’ segment have enabled rich margins and good loan performance,” Lou Loquasto, Equifax’s auto finance leader, said in a statement.

Data differs

Earlier this month, Experian Automotive reported auto loan balances outstanding reached $ 968 billion in the third quarter, a high since Experian started tracking the numbers in 2006 and up 11 percent from the third quarter of last year. Sixty-day delinquencies dipped slightly in the 2015 quarter to 0.73 percent, from 0.74 percent a year earlier. Data differs among the credit bureaus in part because of different analysis mechanisms and varied access to lender data, the companies say.

Source: http://www.autonews.com/article/20151118/FINANCE_AND_INSURANCE/311189992/auto-loans-outstanding-surpass-$ 1-trillion-delinquencies-hold-flat;

Hi, I am Purvi Kanojiya working with Finance company as adviser owing good knowledge of different types of Services such as Education loan in India and Autoloan so on.

Get hold of the most useful ETA Sri Lanka Visa

You might be someone who is planning to make a visit to Sri Lanka. Well you should make sure of taking good efforts in finding the ultimate services so that your Visa gets done without any worry at all. So you should be very specific in finding the ultimate source where it would definitely help in serving your purpose where it would also lead to feel proud of your own good selection. If you are able to find the right one it would help in serving your own purpose that would lead to find yourself free from any sort of worry at all. Therefore your own right selection can help in adding to your purpose where you can sit back and relax while your Visa gets done in the perfect manner. With the best ETA Sri Lanka Visa it would make it possible in adding to your own good satisfaction without any worry. So your own perfect selection can help in finding yourself tensed free that would in turn help in serving your purpose without any reasons to get tensed.

* Does it saves time?: You should make sure to find the right services that makes it possible to save a lot of your time as well. So you have to ensure of taking good steps where it would really help in finding yourself free from any sort of tensions or worries. Thus your own perfect research can definitely add to your own satisfaction where it would help in serving the right purpose.

* Get all important details: It is equally important for you to ensure of getting all important details on Sri Lanka tourist visa online that would help in adding to your own right satisfaction without any worry. So you should definitely try to put your best foot forward to find yourself much knowledgeable that would help in serving your requirements without any reasons to worry at all.

* Contact them: You have to ensure of finding all the right idea about ETA online visa application Sri Lanka that would serve your purpose. So you should definitely try to contact them at the earliest where it would make you feel proud of your own choice made in the right manner. Therefore with your own good choice it would help you to stay tensed free where you can enjoy your visit to Sri Lanka without any problem at all. Visit: https://www.etasrilankavisa.com/termsandconditions.php

We provide ETA Sri Lanka Visa,Sri Lanka tourist visa online ,Sri Lanka travel visa or Sri Lanka tourist visa to travelers to visit Sri Lanka for touring.

Get Hold of Visa for India

by Internet Archive Publication Images The visitors who get on a service journey as well as just should remain in India for much less compared to 72 hours can just get transportation visa to India which is suggested for the 72 hrs of remain in the country. People that wish ahead to India purely to explore Indian culture and also heritage can apply Indian Traveler Visa. All visitor visas for India are generally designed for the period of 6 months. Visitor Visa for India can additionally be offered the period of 5 years which

permits the visitors to remain in the nation for as much as 3 months or 90 days throughout the every journey to India within 5 years. You can speak to any of the private Indian visa handling business who are contracted out by the Indian Consular office for much easier availability of the India Visa. Candidates that possess needed details to process the Indian Visa could directly put their applications to the certified facility of Indian Embassy. Organizing visa for India entails a series of steps as well as its better

if you have sufficient knowledge concerning various Indian visas prior to using for visa.< br/ > * Applicant needs to send his key together with the India Visa application form.

* Applicants ought to contend the very least 2 blank pages in his key with six months of visa validity continuing to be at the time of submitting the visa form. * Applicant needs to offer his 2 recent key size photographs with the other credentials describing the authentication of the applicants eligibility for the visa< br/ > * Candidates have to submit his/her domestic proofs when requesting the visa
. For all the general India Visa cases application will certainly be refined within the 5 functioning days, which sometimes vary from the nation to country where you are using Visa for India. The complete cost of your India Visa might rely on the number of factors like total period of your stays in the country, exigencyof the visa etc. All the basic demands pointed out above could or could not be differ with the nations have visa and migration regulations. At< a rel= "nofollow"href= "http://www.visa-india.co.uk "> Visa India we are committed to advise expert remedies to any one of your Visa for India or Indian visitor visa needs. We have been renowned as a major performer in receiving India visa since we engaged with Indian Embassy for Indian Visa as well as migrations. We delight in to get positive responses from our valued clients who admire us for our real guidance, sensible charges, and accurate services, ideal as well as timely results. Associated Visa Articles