Vehicle repossessions hit the lowest rate since Experian Automotive began tracking the data seven years ago.
In the second quarter, vehicle repossessions dropped 14.8%, Experian said. Roughly 0.36% of all vehicle loans ended in a repossession, down from 0.43% in second quarter 2012, according to the data. The change represented a 10.4% decrease from the previous low of 0.41% in the second quarter of 2006.
The total balance of outstanding automotive loans grew to nearly $751 billion, compared with $682 billion in the second quarter of 2012. Banks increased their total dollar volume by $24 billion, while credit unions increased $18 billion, finance companies $16 billion and captive finance companies $11 billion, Experian said.
Meanwhile, 30-day delinquencies dropped 5.6% in the second quarter to 2.38%, from 2.52% in second quarter 2012, according to Experian. The total is two basis points higher than first quarter 2013 delinquencies and is the lowest for a second quarter since 2006.
Sixty-day delinquencies remained flat at a low 0.58% as the auto lending market stayed strong, said Experian. For second quarter 2006, these totaled less than 0.53%. The 2013 figure is at the next-lowest second-quarter point.
“The seasonality of the market usually has the first quarter showing the lowest 30-day delinquency rates, but even with the total automotive loan portfolio growing, consumers in the second quarter have done an exceptional job of meeting their financial obligations to keep the market strong,” said Melinda Zabritski, Experian's senior director of automotive credit, in a statement.