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

  • First round of NAFTA talks wrap in Washington

    Economic CBC News
    Canada, the United States and Mexico wrapped up their first round of talks Sunday to revamp the NAFTA trade pact, vowing to keep up a blistering pace of negotiations that some involved in the process said may be too fast to bridge deep differences. Source
  • Apple under pressure to dazzle as market slows

    Economic CTV News
    As Apple and Samsung gear up to launch new flagship smartphones, the market leaders are seeking a wow factor that can help them fend off challenges from rising Chinese-based manufacturers. Apple is under particular pressure to dazzle as the culture-changing California iPhone maker looks for a way to maintain its image as an innovation leader in a global market showing signs of slowing. Source
  • From panhandlers to street musicians, not everyone is ready for cashless society

    Economic CTV News
    MONTREAL -- The sound of Anthony Lovison's singing echoes through the corridors of the Montreal subway, reaching commuters' ears long before they see the young brown-haired man and his guitar. Barely a minute into "Heaven's Door," a man walks up with a smile and throws 50 cents into Lovison's open guitar case -- the first customer of the day. Source
  • Eclipse eye safety and airline phone scams: 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. Protect your eyes during the eclipse Planning on watching the eclipse Monday? Regular sunglasses won't be enough to protect your eyes. Source
  • Canadian re-commerce company LXRandCo taking luxury vintage shopping into the future

    Economic CBC News
    You've probably heard of e-commerce. But what about re-commerce? It's the business of buying and selling used items. There's a Canadian company, LXRandCo, that's carving out a niche for itself in this category. It deals in the vintage luxury market, which is growing 14 per cent every year, according to the experts at Canaccord Genuity, a financial services company. Source
  • Canada open to completing NAFTA talks in short order

    Economic CBC News
    Canadian negotiators are open to working on a timeline proposed by the U.S. to complete NAFTA renegotiations before the end of the year, CBC News has learned. A government source, speaking on background, tells CBC News that Canada is willing to work quickly, but will not agree to a bad deal for the sake of meeting a deadline. Source
  • U.S. wants NAFTA talks to wrap up before year's end, but is it possible?

    Economic CBC News
    Canadian negotiators are open to working on a timeline proposed by the U.S. to complete NAFTA renegotiations before the end of the year, CBC News has learned. A government source, speaking on background, tells CBC News that Canada is willing to work quickly, but will not agree to a bad deal for the sake of meeting a deadline. Source
  • B.C. premier and jobs minister sued by fired LNG advocate claiming $5M

    Economic CTV News
    VANCOUVER -- British Columbia's fired liquefied natural gas advocate is suing Premier John Horgan, the province's jobs minister and a New Democrat MP in a lawsuit claiming $5 million in damages. Gordon Wilson alleges in a statement of claim filed in B.C. Source
  • Millennials in Atlantic Canada most optimistic about owning homes

    Economic CTV News
    Do millennials think they can afford to buy a home? If they live in Atlantic Canada, the answer is a lot more likely to be yes. That’s according to a new online survey of 1,000 Canadians aged 25 to 30, conducted by Leger Marketing from real estate firm Royal LePage. Source
  • Can millennials afford to buy a home? It depends where they live

    Economic CTV News
    Do millennials think they can afford to buy a home? If they live in Atlantic Canada, the answer is a lot more likely to be yes. That’s according to a new online survey of 1,000 Canadians aged 25 to 30, conducted by Leger Marketing from real estate firm Royal LePage. Source