NEW YORK -

Auto loan defaults dropped to a new historic low in March, according to the S&P/Experian Consumer Credit Default Indices.

Last month’s data compiled by S&P Dow Jones Indices and Experian showed the auto loan default rate came in at 0.99 percent, dipping below the 1-percent mark for the first time.

A year ago, the auto loan default reading stood at 1.11 percent. In February, the rate was 1.03 percent.

Auto loan performance helped the national composite — a comprehensive measure of changes in consumer credit defaults — to post its lowest post-recession rate at 1.20 percent in March. Analysts from S&P and Experian pointed out that’s the lowest rate since July 2006.

For the second month in a row, all five national indices showed a drop-off.

Beyond the vehicle finance industry, the first mortgage default rate was 1.13 percent in March, its lowest level since September 2006.

The second mortgage sector posted a rate 0.60 percent in March, down from 0.69 percent in February.

Default rates for bank cards also recorded a new historic low in March coming in at 2.73 percent.

“Along with signs that the economy is improving, consumer credit default rates continue to gradually decline,” said David Blitzer, managing director and chairman of the index committee for S&P Dow Jones Indices. 

“Across all categories, default rates improved as the auto loan and bank card sectors reached historic lows,” Blitzer continued. “Economic reports confirm these improving trends. Gains were made in consumer confidence and the labor market as a result of fewer applicants filing for unemployment benefits. Retail sales also increased in March with online spending leading the way ahead of the upcoming holiday. Increasing jobs and growing income if upheld will provide a major boost to consumer spending.

“Consumer default rates have stabilized at levels similar to those seen before the financial crisis,” he went on to say.

“Possible areas of concern are reports of increases lending for car purchases to less credit worthy borrowers as well as the continued rise in student loans,” Blitzer added.

Looking at the five largest cities analysts track for this monthly update, each one produced default rate decreases in March.

Analysts indicated Los Angeles’ rate came in at 1.04 percent, the lowest rate for the City of Angels since July 2006.

Dallas posted the largest month-over-month decline as its default rate 19 basis points to settle at 0.97 percent in March.

Miami generated the largest year-over-year decline as the March rate sunk to 2.07 percent, 86 basis points lower than the same month last year.

“Miami continues to maintain the highest default rate while Dallas has the lowest,” Blitzer said. “All five cities — Chicago, Dallas, Los Angeles, Miami and New York — remain below default rates they posted a year ago in March 2013.”

Jointly developed by S&P Indices and Experian, Blitzer reiterated the S&P/Experian Consumer Credit Default Indices are published monthly with the intent to accurately track the default experience of consumer balances in four key loan categories: auto, bankcard, first mortgage lien and second mortgage lien.

The indices are calculated based on data extracted from Experian’s consumer credit database. This database is populated with individual consumer loan and payment data submitted by lenders to Experian every month.

Experian’s base of data contributors includes leading banks and mortgage companies and covers approximately $11 trillion in outstanding loans sourced from 11,500 lenders.