Canadian auto loan delinquency rates were at their highest level in four years, driven by a year-over-year 35 per cent spike in Alberta and 19 per cent in Saskatchewan.
Nationally, the auto loan delinquency rate rose nearly 10 per cent in the last year to 1.32 per cent in Q4 2015, reported TransUnion in its latest MarketTrends report.
The credit trends reporting agency also noted that as of Q4 2015, Saskatchewan had the highest auto loan delinquency rate of all provinces at 2.7 per cent, and Alberta the second highest at 2.4 per cent.
TransUnion attributes the spike in delinquency rates in the oil-producing provinces to unemployment as a result of falling oil prices.
“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, in a written release.
Wang added that when it comes to delinquency on non-mortgage debt, Ontario and British Columbia were able to lower their overall delinquency rates.
The report also found average debt levels for Canadians went up slightly in 2015, from $21,428 in Q4 2014 to $21,512 that same period in 2015.
Wang said consumers used their credit cards much more during the 2015 holiday season, with credit card debt showing a 4.1 per cent increase and now at a three-year high.
