UK Auto Loan Delinquency Rates (2)

Goals

To review the auto loan portfolios of top lenders in the UK to determine what percentage of their loans have exceeded 30 and 90 days delinquencies.

Early Findings

  • In a recent study by the FCA on motor finance, 2.4 % of accounts with motor finance loans had one or two missed payments at the end of 2016 (30 days delinquency), while 0.4% of accounts had between 3 and 5 missed payments (90 days delinquency).
  • The study was published in 2018 but relied on data from 2014 and 2016 (the latest sets of data available).
  • Auto providers in the UK do not typically outline their auto loan delinquency rates. Major providers such as Barclays and Lloyds tend to combine their auto delinquency rates with other forms of loans such as home loans, credit cards, and other unsecured loans.
  • Overall, 0.4% and 0.1% of Barclays loans have exceeded 30 and 90 days delinquencies respectively.
  • According to the FLA, overall delinquency rates are low.

Proposed next steps:

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