The study also revealed that thirty-day delinquencies rose 9.87 percent over the same period, to 3.06 percent in fourth quarter 2008 from 2.78 percent in fourth quarter 2007. Combined, 30- and 60-day overdue payments accounted for nearly $29 billion in at-risk loans.
"There continues to be a steep climb in the number of people past due on their auto loans, which causes a negative ripple through the industry," said Scott Waldron, president of Experian Automotive. "As more loans become delinquent, lenders begin to tighten their criteria for automotive lending," he added.
Melinda Zabritski, director of automotive credit for Experian Automotive, said: "The overall drop in consumer credit, combined with lenders' tightening of loan criteria, is making it more difficult for auto retailers to find financing for their potential customers."
Other findings from Experian Automotive's Analysis :
- Delinquencies are highest in the Southeast, as Mississippi, Alabama, Georgia and South Carolina have four of the five highest 30-day delinquency rates. The District of Columbia is second.
- The states with the lowest 30-day delinquency rates are North Dakota, Arkansas, South Dakota, Montana and Wyoming.
- The average loan for a new vehicle was $24,444 in the fourth quarter of 2008, down $338 from the first quarter of 2008 ($24,782).
- The average loan for a used vehicle was $15,904 in the fourth quarter of 2008, down $678 from the first quarter of 2008 ($16,582).
- From the first quarter to the fourth quarter of 2008, small economy cars and entry-level SUVs saw significant increases in prime loan market share, up 29.4 percent and 24.2 percent, respectively. For the same time period, prime loans for full-sized pickup trucks and large SUVs saw decreases of 17.31 percent and 13.01 percent, respectively.