Delinquencies on US car loans continued their steady climb as 35 States reported increased ratios of non-payments for Q3 of 1.04%, a quarterly rise of 17 basis points (bps), according to credit rating agency TransUnion.
This marked the fourth consecutive quarterly rise in delinquency and the largest rise in three quarters. The increase in delinquency rates however remained below the Q3 average between 2007 and 2013.
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The year-on-year figures represent a slightly lower increase of just 0.4% from 1.00% delinquency on all loans.
Subprime loans fared better year-on-year, with increases of 30bps to 5.6% which TransUnion believes remains within similar levels to previous quarters.
15 States reported no rise in the number of delinquencies seen in the quarter but three saw big declines. These were Michigan, home of the US automotive industry, West Virginia and Alaska.
In addition, loan balances across the US also rose for the 10th straight quarter, supporting figures reported last month by Experian.
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By GlobalDataExperian also reported a jump in repossessions for the Q3 2013 to 0.62% from 0.40% for Q3 2012.
