Auto Loan Default Rate Rises

By Staff Writer October 20, 2021

The auto loan default rate was up one basis point to 0.35% according to data by S&P Dow Jones Indices and Experian through September 2021. The indices represent a comprehensive measure of changes in consumer credit defaults and show that the composite rate was unchanged at 0.39%. The bank card default rate fell 24 basis points to 2.11%. and the first mortgage default rate was unchanged at 0.27%.

Three of the five major metropolitan statistical areas showed lower default rates compared to last month. Miami had the largest decline, down eight basis points to 0.80%. New York fell four basis points to 0.40% while Los Angeles dropped three basis points to 0.31%. Chicago was unchanged at 0.43% and Dallas was two basis points higher at 0.43%.

Jointly developed by S&P Dow Jones Indices LLC and Experian, the S&P/Experian Consumer Credit Default Indices are published on the third Tuesday of each. They are constructed to track the default experience of consumer balances in four key loan categories: auto, bankcard, first mortgage lien and second mortgage lien. The Indices are calculated based on data extracted from Experian’s consumer credit database. This database is populated with individual consumer loan and payment data submitted by lenders to Experian every month.

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Last modified on Wednesday, 27 October 2021 19:17