Average auto loan debt per borrower and delinquency rates rose in Canada in the second quarter as vehicle prices rose, customers took on additional debt and various regions continue to recover from the economic crisis, TransUnion said in its Canada Industry Insights Report released Tuesday.
The average balance per borrower on auto loans was $20,447, up 2.4 "per cent from a year earlier. The increase was driven by an assortment of factors, such as vehicle price upticks and rollovers of negative equity, Matt Fabian, director of research and analysis for TransUnion Canada, told Automotive News.
"We know in the industry there's a lot of debt consolidations. It's more prevalent in the U.S., but in Canada when they buy an automobile they might bundle the remaining debt from their automobile into their new one," he said.
The average transaction price in Canada increased 13 "per cent to $36,468 in April, 3.6 "per cent to $32,544 in May and 3.3 "per cent to $33,501 in June, according to J.D. Power.