The rate of delinquent auto loans rose by 9% in the second quarter of 2014 versus the same period in 2013 while outstanding auto debt also rose for the 13th straight quarter, according to TransUnion, one of the nation's three consumer data analytic firms.

The auto loan delinquency rate, which TransUnion defined as 60 days or more late, rose to 0.95%, up from 0.87% in the second quarter of 2013, but firm also reported auto loan delinquency fell from 1.00% in the first quarter of 2014.

“Auto lending remains similar to what we have observed during the last several quarters,” said Peter Turek, automotive vice president at TransUnion. “Delinquency rates remain relatively low while auto loan balances keep rising – both metrics aided by increasing auto loan originations”

There are four million more auto loan accounts in the marketplace than TransUnion observed last year, Turek noted.

“This means with more auto loans in the marketplace and a delinquency rate ticking higher, we now have several thousand more delinquent accounts than at the midpoint of 2013,” he added.

TransUnion also reported that auto loan debt per borrower jumped 4.1% from the second quarter of 2013, moving from $16,410 in 2013 to $17,090 in 2014. 

The increase in auto debts occurred in every state and with every age of borrower, with borrowers aged 40 to 49 taking out the largest auto loans at $18,840.

The firm also found the delinquency rate on subprime auto loan borrowers also increased from 4.12% in the second quarter of 2013 to 4.61% in the second quarter of 2014 and that the share of auto loan originations held by subprime borrowers increased by 56 basis points over the same period, from 33.80% in 2013 to 34.36% in 2014.

TransUnion said that this is still less than 38.98% of auto originations that were in place during the first quarter of 2007.

“It will be interesting to see if lending to the subprime segment of the population continues to grow and what, if any, the impact will be on the overall delinquency rate,” Turek said. “Historically, increased subprime lending pushes the overall delinquency rate higher. This is not necessarily a bad thing for the auto ecosystem – consumers find reliable transportation for work, lenders actively minimize the risk, and dealers sell more cars.”