Car Loans Tighten as Debtors Miss Payments

COSTA MESA, Calif. (TheStreet) -- If you're thinking about buying a new car, start saving your pennies because it's becoming tougher to get a loan.

Experian, the Costa Mesa, Calif.-based credit-reporting company, says the number of auto loans at least 60 days past due has risen by 21%, putting more than $25.5 billion in loans at risk, including 30-day delinquencies. In the second quarter, 0.8% of all automotive loans were 60 days past due, compared with 0.66% for the same period in 2008. Thirty-day delinquencies rose by almost 15% in the second quarter.

The stats were part of Experian's quarterly State of the Auto Finance Market report, released on Sept. 9. The company, which also provides data to carmakers, dealers and insurers, compared the first half of 2009 with the first half of 2008. While some of the results were grim, there were signs of stabilization.

"The increase on 30-day delinquency amounts to $20.3 billion in outstanding loans, with banks shouldering most of the debt," the report reads. "Banks continued to experience the sharpest rise in delinquency, with an increase of more than 30%."

Only three states saw a year-over-year reduction in 30-day delinquencies: Alaska (15%), Nebraska (3%) and Michigan (2%). The states with the largest percentage increases were Idaho (61%), Montana (38%), Hawaii (32%), Washington (28%) and Utah (27%).

Experian says rising delinquency rates have caused lenders to tighten criteria, pushing some consumers out of the new-vehicle market. However, the bad news for new-car shoppers is good news for those selling used vehicles.