Monthly Archives: March 2011

Auto loan delinquency rate stablizes

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Posted in Auto Loans & Financing News

The auto loan delinquency rate, which tracks loans with payments that are more than 60 days late, remained relatively flat in the fourth quarter of 2010, although the figure was well below that of the same period in 2009.

According to TransUnion, one of the three major credit bureaus, 0.59 percent of all car loans were delinquent in the fourth quarter in 2010, a very slight increase from the 0.58 percent in the third quarter. However, the rate was still a 27.2 percent improvement over the fourth quarter of 2009.

"As expected, the national delinquency rate changed very little during the fourth quarter as this period typically exhibits the least amount of seasonality," said Peter Turek, automotive vice president for TransUnion. "The good news is that TransUnion expects national auto delinquency rates to continue to be well below the peak of 0.86 percent – a rate experienced during the heart of the recession in the fourth quarter of 2008."

The credit bureau predicts that the figure will remain relatively stable throughout 2011, and won't approach the levels seen during the recession. Specifically, the company is forecasting a rate of nearly 0.48 percent for around mid-June, before jumping back up to 0.56 before the end of the year.

Drivers interested in financing their new or used vehicle purchase may want to visit New Jersey State Auto Auction, which offers car loan solutions for all buyers.
 

Ford to recall more pickup trucks

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Posted in Auto Industry News, Ford

Ford is again recalling a slew of pickup trucks, just days after the automaker was forced to call back many used Ford F-150s for a problem related to airbags.

The new recalls include 23,688 Ford Rangers from 2010, specifically those equipped with the 2.3-liter engine. In addition, nearly 15,000 F-150, F-250, F-350, F-450, F-550, Edge and Lincoln MKX models are being called back for a second time.

For the Rangers, the issue appears to be with the fuel lines. The automaker says that a protective layer near the lines may not properly be installed. Eventually, this could potentially cause a fuel leak, although the company has received no reports of fires thus far.

The second grouping of vehicles are related to issues with the body control module (BCM). Ford believes that an electrical short within the BCM could potentially cause a fire – but again, no problems have been reported. A similar subset of vehicles was recalled in December, but the automaker believes that an issue with the vehicle diagnostic systems may have caused some trucks to be missed.

Last week, Ford announced a recall for 135,000 F-150s due to an airbag that could inadvertently deploy. The National Highway Traffic Safety Administration previously requested Ford to recall 1.3 million pickup trucks, but the automaker claimed only 135,000 were affected. The two groups are currently determining whether the recall was sufficient or if more action needs to be taken.

Relaxed auto financing spurring car sales

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Posted in Auto Loans & Financing News

The auto industry is quickly recovering from the crippling effects of the recession, and one of the key components in the turnaround is the increase in the availability of car loans.

According to the New York Times, new car sales rose 11.4 percent in 2010, with used cars similarly seeing strong sales. The first two months of 2011 have been even stronger for dealers and automakers.

One of the most marked differences between 2010 and 2009 is the availability of auto loans, especially to buyers with a bad credit history. CNW Market Research data shows that 859,000 vehicles were sold to subprime borrowers in 2010, which represented a 60 percent increase over 2009, when lenders were much less willing to take risks on borrowers.

Now, with banks and dealers in a stronger financial position, many lenders are allowing for bad credit loans again. And the availability of loans is in turn facilitating transacations at the dealership.

"We had people coming to our showrooms that wanted to buy, but we couldn't get them financed," Michael Maroone, CEO of the dealership chain AutoNation told the news source. "We are now getting them the financing."

Drivers who are interested in purchasing a new or used car should consider New Jersey State Auto Auction, where they can choose from a wide selection of vehicles and get financing for their purchase.
 

Consumer Reports releases Automakers Report Card

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Posted in Ford, General Auto News

Consumer Reports has revealed the results of its Annual Automakers Report Card, and while the top and bottom spots remained the same, there was a bit of a shuffle in the middle.

Honda once again topped the list, with the automaker scoring an overall rating of 74. The ratings are compiled after the magazine tests each vehicle at nearly 50 different data points. The scores for each vehicle are then averaged across the entire fleet, giving a ranking for the automaker as a whole.

Despite not nearly generating the sales interest that the major brands do, Subaru was able to earn second place with a score of 73. That beat out the largest automaker in the world, Toyota, which scored a 71 overall.

The most improved automaker was Ford, with the company noting that the brand had made some major jumps in reliability. The manufacturer scored a 67, good enough for fifth place on the report.

Other domestic automakers didn't fare so well. Chrysler was once again in last place with a score of 43, while General Motors was next-to-last at 56. Despite this, the guide did have a few encouraging words, noting that many of the companies' new models were promising, but the older cars dragged their average down.

Drivers interested in any of these brands may want to pay a visit to New Jersey State Auto Auction, where they'll find a wide range of both new and used cars for sale at affordable prices.