For the ninth consecutive quarter, the number of auto loan delinquencies decreased compared to the year before. In the final quarter of 2011, the rate fell to 0.46 percent from 0.59 percent in 2010 and this gives yet another reason to be optimistic about the improving economy.

Perhaps most encouraging was that there was no seasonal rise in delinquencies for the quarter, something that usually happens during the final few months of the year. TransUnion found this was just the third time in the last decade where this was not the case. Additionally, given that there has been a growth in the number of auto loans, the fact that there has not been an increase in delinquencies is also encouraging.

"Ending the year flat is particularly interesting, because the number of new auto loans coming onto the books has consistently increased since the end of the recession, a primary driver of which has been an expansion in lending to consumers in the subprime market,"  said Peter Turek, automotive vice president in TransUnion's financial services business unit.

Don't expect anything to change, TransUnion says. There is a considerable demand for both new and used cars, which will urge prospective buyers to make their loan payments on time. Additionally, with the economy expected to continue to improve over the coming years.

Anybody in the market for a used car but concerned that their checkered credit history will prevent them from doing so need look no further than New Jersey State Auto Auction. Thanks to a partnership with the Credit Acceptance Corporation, the dealer is able to offer guaranteed credit approval so you can drive away with a used car in no time.