Lenders have become increasingly likely to approve loans for people looking to a buy a used car in New Jersey or elsewhere, and it looks like their trust in consumers has been rewarded. The rate of late auto loan payments is currently at its lowest point in 13 years, according to The Associated Press.
From January to March of this year, the number of auto loan payments that were at least 60 days overdue dropped significantly to a national level of 0.36, good for a decrease of about 27 percent compared to the same period in 2011. The findings are especially encouraging given that lenders are approving financing for even the most high risk borrowers. Additionally, consumers seem to be especially likely to prioritize their car payments.
"Consumers have done a very good job of adjusting to their ever-changing circumstances and managing their debt load," Peter Turek, a vice president at TransUnion's financial services business unit, told the AP. "The data show consumers are, in fact, paying their auto loans more on time than other loan products."
This marks the 10th consecutive quarter that auto loan delinquency rates have been lower than the previous year's quarter. Experts say a lot of that can be chalked up to the fact that the recession caused many consumers to make paying off loans and other debts a priority.
If you're still concerned about being approved for a loan, you should head to New Jersey State Auto Auction. Thanks to a partnership with the Credit Acceptance Corporation, NJ Auto is able to offer guaranteed credit approval, regardless of your past history, and there's no better way to rebuild your credit score than by making loan payments on time.
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