Net loss and delinquency rates on auto loans dropped sharply in February from their levels the previous month, Moody’s reported yesterday. Those rates continue a trend of improvement over the past year. Delinquency rates fell to .48 percent of account balances, an improvement of 27 percent over February 2003 marks. It marks the tenth straight month of abatement. The net-loss rate improved 29 percent from January 2003 levels, the ninth straight month of improvement. The net-loss rate stood at .98 percent in February.
The loss rate is at its lowest level since June 2000 and the delinquency rate is at its lowest point since April 2001, the investor’s service reported.
Those figures are welcome news for manufacturers such as Mitsubishi Motor Corp., whose recent financial woes can be blamed in part on bad auto loans.
The findings are detailed in an upcoming report on Moody’s Prime Auto Loan Credit Indexes for February 2004.The report tracks the combined performance of over $84 billion of prime auto loans across the U.S. backing securities rated by Moody’s.