Auto Delinquency Rate in California Higher than National Average
According to TransUnion, 0.91 percent of auto loans in California were late on payment.
One reason why consumers may consider filing bankruptcy is an inability to pay off their bills, including those associated with auto loans.
A recent report from TransUnion showed that during the first quarter, California, Nevada and Arizona all posted vehicle loan delinquencies that were higher than the national average of 0.66 percent. Of the three, California posted the highest rate of 0.91 percent, followed by Nevada at 0.79 percent and Arizona's 0.71 percent.
Nationally, the number of auto loans that were at least 60 days late on payment declined 18.52 percent between the fourth quarter of last year and the first quarter of 2010.
"The national trend we are now seeing points to a clear improvement in payment behavior," Peter Turek, automotive vice president for the company, said. "As we noted last quarter, part of the reason for the turnaround in delinquency rates is the influx of new, lower-risk loans."
Since the recession, lenders have taken a more measured approach when granting consumers access to credit. Increases in defaults for different types of loans have led to financial institutions looking to reduce risks.
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