Alaskans keeping up on car loans

Anchorage Daily News

Published: March 17th, 2009 08:46 PM
Last Modified: March 17th, 2009 08:46 PM

Alaskans had the lowest delinquency rate in the nation on car loans during the fourth quarter of last year, according to credit reporting agency TransUnion. While the national average auto-loan delinquency rate was 0.89 percent in the fourth quarter -- up from 0.79 percent a year earlier -- the Alaska rate was 0.19 percent. The next lowest rate was in North Dakota, at 0.34 percent. Mississippi had the highest rate at 1.6 percent, followed by California's 1.5 percent.

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Alaska also showed the largest lowering of its delinquency rate among the states: The Alaska rate was 0.47 percent at the end of 2007.

"Certainly the overall economy, the weak labor markets, disposable income, are all affecting auto debts as well," said Peter Turek, automotive vice president in TransUnion's financial services group.

Since the recession began in December 2007, auto loan delinquencies have jumped 25 percent, compared with a 10 percent increase in the 2001 recession, Turek said. He expects the delinquency rate will rise to 1.13 percent by the end of this year. Alaska's rate is forecast to be 0.27 percent at year-end.