Auto Loan Debt Per Borrower, Late-Payment Rate Increased in 2Q

Lifestyle and Budget Associated Press

As U.S. sales of cars and trucks have grown this year, so has the late-payment rate on auto loans.

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Credit reporting agency TransUnion said Tuesday that the rate of U.S. auto-loan payments late by 60 days or more rose to 0.95% in the second quarter. That's up from 0.87% a year earlier, but down from 1% in the first quarter.

The increase follows strong growth in auto sales, which has fueled a rise in auto lending, including to more borrowers with less-than-perfect credit.

Americans also are carrying higher loan balances.

Auto loan debt per borrower grew 4.1% to $17,090 in the April-June period from a year earlier.

Auto loans tend to have higher balances early on, which contributes to more auto loan debt.