TransUnion Reports Q1 Spike in 60-Day Delinquencies
The percentage of U.S. borrowers more than 60 days past due on their auto loans increased by five basis points year-over-year to 1.38% in Q1, according to the latest Credit Industry Insights Report from TransUnion.
That figure exceeds the “peak delinquency” rate of 1.33% set in the first quarter of 2009, during the Great Recession. It also disagrees with the 0.83% 60-day delinquency rate reported by Experian for the same quarter.
Analysts did note auto loan originations improved to 6.2 million, up 8% from Q1 2024, led by but not restricted to the highest credit tiers. Alluding to new tariffs on imported vehicles levied by the Trump administration, Satyan Merchant, a senior vice president at TransUnion, predicts further volume increases — at least in the near term.
“There have been positive signs of recovery and momentum across all tiers, not just superprime. The return of incentives has provided a tailwind to vehicle sales and financing,” Merchant writes in a release. “Nevertheless, some of this progress may reverse if the recently announced trade policies are implemented long-term, as they could further impact affordability. Despite this, we expect Q1 2025 originations to increase, as many consumers likely tried to secure a new vehicle before the tariffs were implemented.”
