60-day delinquency rate rises 7 bps in Q3
Experian Automotive’s latest State of the Automotive Finance Market report indicated the 60-day delinquency rate ticked up 7 basis points year-over-year during the third quarter, landing at 0.74 percent.
Each of the four categories of providers Experian notes in its report experienced a slight uptick in 60-day delinquencies. The segment that experienced the highest rise was captives, which watched its Q3 rate move to 0.50 percent, up 9 basis points.
Both banks and what Experian classifies as finance companies — institutions that book vehicle contracts but do not hold customer deposits — each had a 5-basis-point rise in Q3. The rate for banks came in at 0.63 percent while for finance companies, the rate stayed highest among the four categories at 1.78 percent. The rate for finance companies is typically highest since they often have the most subprime paper in their portfolios.
Elsewhere in Experian’s latest report, analysts spotted three states where the 60-day delinquency rate climbed above 1 percent. That group included Maryland (1.55 percent), Louisiana (1.44 percent) and Mississippi (1.32 percent).
Rounding out the top 10 states for 60-day delinquency were:
—Alabama: 0.99 percent
—New Mexico: 0.96 percent
—South Carolina: 0.94 percent
—Texas: 0.94 percent
—Georgia: 0.91 percent
—North Carolina: 0.85 percent
—Nevada: 0.83 percent
On the opposite end of the spectrum, Experian indicated Oregon posted the lowest 60-day delinquency rate in Q3 at 0.30 percent.