For the second consecutive quarter, the national auto loandelinquency rate hit its lowest level since TransUnion begantracking the data in 1999.

The firm tracked the ratio of borrowers 60 or more days pastdue. Auto loan delinquency rates in the second quarter dropped to0.33%, down from 0.36% in the first quarter.

On a year over year basis, auto loan delinquencies declined 25% from 0.44% in the secondquarter of 2011, according to TransUnion.

In addition to increased demand in new and used autos, auto debtper borrower has risen nearly 6% from $12,689 in Q2 2011 to $13,427in Q2 2012, TransUnion said.

Despite growing auto debt, the majority of states and cities areexperiencing declines in their auto loan delinquency rates. BetweenQ1 2012 and Q2 2012, 37 states experienced declines in their autodelinquency rates.

A recent TransUnion study found that consumers now value their auto loans more than their creditcards and mortgages, said Peter Turek, automotive vice president inTransUnion's financial services business unit.

“This is partly due to the need for transportation to get towork or to seek employment in a difficult job market,” Turek said.“Additionally, consumers with car loans have more equity in theirvehicle than they have in the recent past because of the strongused car vehicle market. Consumers want to keep their auto loanrelationships in good standing.”