In yet another cautious sign or recovery for the ailing automotive industry, according to figures compiled by the American Bankers Association, auto loan delinquencies dropped for the third quarter of 2009.

The Association's report indicated the 3.5 percent of auto loans, in which financing was arranged via a dealership and 2.04 percent of loans negotiated with a bank were 30 days past due.

In the fourth quarter of 2008 delinquencies on indirect auto loans saw their all-time high of 3.53 percent with direct auto loans topping at 3.01 percent in the first quarter of 2009.

These figures began their climb in the fourth quarter of 2007, when indirect loan delinquencies moved past the 3 percent mark for the first time since 1990. The association did not keep records prior to that time.

James Chessen, the chief economist for the association said in an issued statement, "It's always a good sign when delinquencies decline, but they're still relatively high," no doubt a result of continued high unemployment and weakness in the housing sector. Consequently, he said, "there's still a bumpy road ahead."

At the same time, however, other types of consumer loans also so a drop in reported delinquencies including credit cards, but delinquencies for home-equity loans remained at an all time high. Taken together, all these factors indicate an economy still in crisis, but feeling its way toward potential recovery.

Sales of light vehicles in the United States did show a 15 percent gain in December 2009 over the previous year, but more people buying cars cannot always be equated with their ability to continue to pay for those purchases.