It shouldn’t come as a surprise but many are still concerned about the increase in auto loan delinquency during the third quarter of this year. More Americans were late in their loan repayment as job cuts and lay-offs continued. The auto delinquency rate is determined by the amount of people who fall behind 60 days or more on their repayments.

It edged up to 0.81 percent in the July-September quarter. This increase reflects both seasonal trends and the weak economy. It’s actually quite common for late payments to occur during this period because borrowers focus on other expenses. Many of them get back on track during the first and second quarters. But amid these worrying figures, there are some bright spots.

Washington DC, for example, experienced a significant rate decrease in delinquency. Other states such as North Dakota, South Dakota, Colorado, Louisiana, Maryland, and Vermont also saw a decrease as well. North and South Dakota typically have the lowest delinquency rates in the United States for all kinds of loans. It is the improvements see in states like Louisiana that can be seen as a sign of recovery. Year-on-year, the state’s auto delinquency rate plummeted by over 14 percent.

While it is too early to say for certain, some analysts believe that the some spots in the country are starting to recover faster than the others. The relatively small increase in delinquency compared to 2008 also reveals that these types of loans are quite difficult to get today because financial companies have raised their lending standards.

Meanwhile, consumers are also trying to cut spending and taking on fewer loans. The rate of auto delinquency followed the results of mortgage delinquency. On the other hand, credit card delinquency mellowed in the third quarter from the second.

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