Auto Loan Delinquencies Drop

Fewer Americans are defaulting on their car payments, the Detroit Free Press reports.

The newspaper cites credit monitoring agency TransUnion, which says the ratio of auto loans overdue by 60 days or more has fallen to a near-record-low of 0.36% of total lending from as high as 0.86% four years ago.

A lower default rate encourages finance companies to maintain easy credit policies, and it hikes profits for auto lenders, including the captive arms of carmakers.

The improving delinquency trend hasn't been dampened by the increase in lending to car buyers with less than sterling credit ratings, the Free Press notes. Such subprime loans on new and used cars rose to 37% of total lending compared with 28% in 2009.

Analysts opine that lower interest rates and greater access to loans are boosting U.S. vehicle sales. Online auto data provider Edmunds.com estimates that tight credit kept about 1.8 million consumers out of the auto market between 2008 and 2011.