Delinquent car loans rose in third quarter
Posted on: Monday, 24 November 2008, 11:47 CST
Delinquent U.S. car loans rose 8.1 percent in the third quarter, reaching $22.9 billion, meaning loans may be harder to get at banks, a lending expert said.
Delinquencies definitely make banks more hesitant. They change their credit policies. They lower the amount they're willing to loan,
research director Bobbie Britting at TowerGroup told USA Today Monday.
A study at Experian's auto group found delinquencies -- loans with payments 30 days late -- rose 8.1 percent from a year ago, but loans 60 days late also rose, up 12.7 percent, leaving an additional $7 billion in bank loans at risk of default, the newspaper said.
Phil Reed, a consumer advice editor at Edmunds.com, an online car dealership, said 1.6 million vehicles would be repossessed in 2008, the newspaper said.
People put themselves into vehicles that they can't keep up with,
Reed said. They really are selling the American dream at the dealership. The car is a very visible demonstration of how well you're doing in the world ... of who you are,
he said.
Source: United Press International
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