It's not just the home mortgages that are taking a toll in this economy. Auto loans are having their share of troubles as well. Borrowers have pushed the total of late payments up to over $25 Billion recently according to figures released by Experian Automotive, a part of Experian, at the Automotive Finance Summit by the hotels in las vegas this week.
Experian Automotive presented a comprehensive overview of automotive lending trends based on a quarterly analysis of the market from the second quarter of 2006 through the second quarter of 2008. The analysis found that loans 30 days past due were up 9 percent year-over-year in the second quarter of 2008, while loans 60 days past due were up 11 percent. Currently, 2.48 percent of all automotive loans are 30 days past due, compared with 2.28 percent in the second quarter of 2007. Automotive loans 60 days past due rose to 0.75 percent from 0.67 percent. Although it may not seem like a ton to the average person this is a significant increase over this term. Just shows that the economy is taking its toll on even more industries.
On a happier note, gas prices have dropped significantly over the last week. While we were probably paying $3.50-4.00 a gallon a week ago, many of us are seeing prices at the pump around $3 now, and I have even gotten gas for as little as $2.90 a gallon in the last few days.
Theory suggests that the decline comes as hurricane season winds down and oil prices drop because demand is likely to weaken as the economy slows. Hey...at least getting to work and back isn't going to be so costly this month. Great time to build up your cash reserve, or pay off some debt because this isn't going to be this friendly for a long time. I guess if you don't like to think a head, then you have more money to blow on stuff you want instead of using a credit card for it.