Ford’s credit operation on Tuesday said US car repossessions fell in January and February, in the latest sign that consumer credit quality is starting to improve.
According to Reuters, Ford Motor Credit repossessed 18,000 cars in January from people who didn’t make their monthly payments, down from 19,000 in the same month last year, and 15,000 cars in February, down from 17,000 a year before.
The percentage of customers more than 60 days delinquent on their loans also reportedly fell, to 0.26% in January and 0.21% in February from an average of 0.42% in the first quarter last year.
Associated Press said the figures were revealed by Ford in an investors’ meeting and that Ford’s losses from loans are also heading lower because the company is making less risky loans.
With improving loan quality, Ford Credit reportedly said it is likely to reduce its loan loss provisions, which are upfront hits the company takes against earnings for expected losses from loans.