Auto loan delinquencies rise in Alberta and Saskatchewan: TransUnion report

TORONTO -- Delinquency rates on auto loans are soaring, pointing to another spillover effect from the slowdown in the oilpatch.

See Full Article

Credit monitoring agency TransUnion says in its latest report that auto loan delinquency rates climbed nearly 10 per cent in the fourth quarter of last year to their worst levels in four years.

The increase was led by higher rates in Alberta and Saskatchewan where workers have been hit directly and indirectly by job losses due to the drop in oil prices.

TransUnion says that nationally, auto loan delinquency rates were 1.32 per cent in the fourth quarter of last year, up from 1.21 per cent the previous year.

However, the auto loan delinquency rate hit 2.66 per cent in Saskatchewan, up from 2.24 per cent year over year.

And Alberta saw a delinquency rate of 2.42 per cent, up from 1.80 per cent in the fourth quarter of 2014.

"This was the largest spike in the national auto loan delinquency rate that we've observed in quite some time, but we do think it's a regional issue," said Jason Wang, TransUnion's director of research and analysis in Canada.

"Falling oil prices have led to rising unemployment rates in oil-rich regions. We are now seeing the increase in unemployment in these areas manifest as rising delinquencies across the board, though the greatest impact has been on auto loans."

Overall, delinquency rates for non-mortgage loans in the fourth quarter were roughly the same at 2.67 per cent, versus 2.66 per cent a year ago.

For Alberta the rate was 2.77 per cent, up from 2.62 per cent, while Saskatchewan rose to 3.01 per cent from 2.92 per cent.

The report also said average non-mortgage debt ticked higher to $21,512 in the final three months of 2015, up from $21,428 a year earlier.

The increase came as debt levels rose for auto loans, credit cards and instalment loans, but decreased for lines of credit.



Advertisements

Latest Economic News

  • Asian stocks mixed after weekend of global election results

    Economic CTV News
    HONG KONG - Asian shares were mixed on Monday as investors turned their attention to global politics and evaluated weekend election results from Germany and New Zealand. KEEPING SCORE: Japan's Nikkei 225 index rose 0.6 per cent to 20,414.93 but South Korea's Kospi lost 0.4 per cent to 2,380.38. Source
  • Too soon to tell if NAFTA deal can be reached by deadline: Chief negotiator

    Economic CTV News
    OTTAWA -- Canada's chief negotiator says solid progress is being made in talks to rewrite the North American Free Trade Agreement, but it's too soon to tell if a deal can be reached by the year-end deadline set by the United States. Source
  • Alibaba's online payment platform AliPay coming to Canada: company

    Economic CTV News
    TORONTO - Chinese online shopping giant Alibaba Group's online payment platform AliPay will officially launch in Canada through a partnership with Canadian tech firm Snap Pay Inc. Canadian retailers will be able to accept Chinese currency from Chinese shoppers starting this week. Source
  • U.S. dairy takes aim at Canadian supply management in round 3 of NAFTA

    Economic CTV News
    OTTAWA -- The first punches in what promises to be a bitter fight over Canada's protected dairy industry are expected to be thrown during this week's third round of North American Free Trade talks in Ottawa. Source
  • C'est la vie: Canadian energy producer accepts French drilling ban with a shrug

    Economic CTV News
    CALGARY -- The traditional 20th anniversary present is china but Canada's Vermilion Energy Inc. is getting quite a different gift for its second decade as a light oil producer in France: a divorce petition with an implementation date of 2040. Source
  • How car dealerships upsell you: CBC's Marketplace consumer cheat sheet

    Economic CBC News
    Miss something this week? Here's the consumer news you need to know from CBC's Marketplace. Get this in your inbox every Friday. Sign up here. What got out in the Equifax hack? A massive cybersecurity breach may have exposed the personal information of about 100,000 Canadians. Source
  • Boeing-Bombardier ruling slated for Monday

    Economic CTV News
    OTTAWA -- Politicians, defence officials and Canada's aerospace industry have Monday circled on their calendars as the date to watch in Boeing's ongoing trade dogfight with Montreal-based Bombardier. Here's what you need to know, and what is expected to follow: Source
  • Report calling for end of gas price regulation flawed, says economist

    Economic CBC News
    A Nova Scotia-based think-tank says gas price regulation has taken millions of dollars out of the wallets of drivers in Atlantic Canada, but an economist says the report is filled with factual errors and the methodology is flawed. Source
  • Site C dam project draws criticism at Vancouver public input session

    Economic CTV News
    VANCOUVER - Critics of an $8.8-billion dam project in British Columbia voiced concerns over the long-term costs of the project during the first in a series of public input session. The province's new NDP government directed the BC Utilities Commission to review the economic viability of the Site C hydroelectric dam project that was initiated by the former Liberal premier Christy Clark. Source
  • Pricey even with a contract: Wireless carriers release iPhone 8, iPhone X pricing

    Economic CBC News
    The first of the new iPhones are now available in Canada and wireless companies have released their pricing. With a two-year contract at Bell and Rogers, the iPhone 8 will cost $229 Cdn or $429 depending on the memory size. Source