TORONTO -

Canadian auto borrower debt for the first quarter jumped more than 12 percent year-over-year, but TransUnion indicated in its quarterly analysis one mitigating factor that is offsetting this moderate increase.

Furthermore, auto delinquency rate was down, which is also good news.

“The modest growth rate in auto financing debt is balanced by increases in installment debt where the major banks have continued to enter the direct auto financing market, offering additional choices for consumers,” said Thomas Higgins, TransUnion’s vice president of analytics and decisioning.

“Positive declines in delinquency rates continue to bode well for Canadians managing their current debt loads,” he added.

Specifically, TransUnion indicated that the auto delinquency rate — defined as the proportion of auto accounts at least 90 days delinquent — was 0.1 percent, down from 0.11 percent in the fourth quarter of 2010 and from 0.13 percent in the first quarter of last year.

The highest delinquency rates were found in Manitoba and Nunavut (0.39 percent), according to the analysis. Meanwhile, the province with the lowest rates was Quebec (0.06 percent), followed by Newfoundland and Labrador (0.07 percent).

TransUnion found that auto borrower debt in Canada — determined to the total balance on the entirety of an average borrower’s auto loans — came in at $16,181, essentially unchanged from the fourth quarter ($16,189) and a 12.4-percent hike from the first quarter of 2010.

The total auto debt of Canada was $45.6 billion, down from $45.8 billion in the fourth quarter and $46.8 billion in the first quarter of 2010.

Looking at the overall data, TransUnion indicated that total debt per consumer (outside of mortgage) was at $25,597 during the first quarter, a 4.5-percent year-over-year increase.

"Our first quarter data shows a continued increase in the total debt per consumer, although the trend still remains modest compared to the double-digit, pre-recession levels,” Higgins shared.

“The post-Christmas seasonal pattern remained intact, with a quarterly drop in credit card balances per consumer and a slight increase in delinquency rates compared to the fourth quarter of 2010,” he added.

“All in all, the first quarter was typically Canadian, with minor shifts in spending, continued fiscal management of delinquencies and modest confidence increases supporting continued spending increases,” he concluded.