Customers fall behind on car payments, but defaults and repos down – PRNDL Community

Customers fall behind on car payments, but defaults and repos down

The default rates top 2019 levels.

Auto borrowers are having trouble keeping up with their car payments, according to recent reports via TransUnion and Equifax.

1.63% of auto loans hadn't seen a payment in at least 60 days, up 0.4% from a year earlier and 2019 levels.

Borrowers who took out auto loans in the Q2 and Q3 of 2020 are keeping up with them better than pre-pandemic borrowers and 2021 borrowers, according to TransUnion.

some lenders with subprime lending divisions attributed this result to policy changes rather than consumer behavior

There remains a low default rate, however. And fewer defaults turning into repossessions, suggesting borrowers are resolving their delinquencies.