TransUnion Forecasts Dip in Auto Loan Delinquencies

The new year has just begun, and dealers already have a piece of good news.

The major credit union TransUnion expects auto loan delinquencies to fall slightly in 2025 after three years of increases including only a tiny increase in 2024 vs. 2023.

“There are some moving parts, but net-net is, we’re really seeing stability in this market – auto in particular,” Michele Raneri, vice president and head of U.S. research and consulting at TransUnion, tells WardsAuto.

At the end of 2024, analysts categorized an estimated 1.45% of auto loans and leases, a negligible increase vs. 1.42% a year ago, as serious delinquencies, defined as 60-plus days overdue.

“The increase of auto delinquency, it’s still ticking up in 2024, but barely going up,” Raneri says.

That’s good news for dealers trying to get buyers with less than top-notch credit qualified. Many households are still spread thin, with high monthly payments on other forms of credit besides auto loans, such as mortgages or rent.

Consumers should experience additional relief in 2025, assuming the Federal Reserve sticks to cutting interest rates.