Automotive Loan Delinquencies Drop For First Time Since 2007

Latest credit analysis from Experian Automotive shows fewer loan delinquencies, but credit in higher-risk tiers is still tight

Automotive Loan Delinquencies Drop For First Time Since 2007

Latest credit analysis from Experian Automotive shows fewer loan delinquencies, but credit in higher-risk tiers is still tight

Schaumburg, Ill., June 15, 2010 — American consumers are doing a better job of making payments on their auto loans as delinquencies on 30- and 60-day loans fell in Q1 2010 for the first time since Experian Automotive started reporting on quarterly loan delinquencies in 2007.

The 30-day delinquency rate fell 1.06 percent from Q1 2009 to Q1 2010 (2.82 percent to 2.79 percent), according to Experian Automotive’s most recent analysis of the automotive finance market as of the first quarter of 2010. The 60-day delinquency rate fell from 0.79 percent in Q1 2009 to 0.78 percent in Q1 2010.

“As we look for positive economic trends related to consumer behavior, the drop in automotive loan delinquencies is a step in the right direction,” said Scott Waldron, president of Experian Automotive. “A healthy lending industry is ultimately an important pillar of a healthy auto industry. When fewer people are delinquent on payments, it is good for lenders, which should translate into positives for the auto industry down the line.”

Despite the drop in loan delinquencies, lending institutions are still taking a cautious approach to their lending strategies. The average credit score for a new vehicle loan in Q1 2010 was 776, up three points from Q1 2009. In addition, the percent of Near prime, Subprime and Deep subprime loans for new vehicles dropped from 17.99 percent in Q1 2009 to 16.86 percent in Q1 2010.

“It is very clear that lenders continued to take a disciplined approach to new vehicle loans in the first quarter,” said Melinda Zabritski, director of automotive credit for Experian Automotive. “As a whole, lenders remain much more risk-averse than they were two or three years ago. However, financing is still available for some customers in higher-risk tiers. Automotive retailers might need to look a little harder and might need to educate their customers about changes in loan terms, but it is still possible to get these consumers into a vehicle.”

Other findings include the following:

  • The overall finance market has remained stable, with growth occurring in Prime segments (total prime market up 2.55 percent)
  • The average credit score for used vehicle loans rose to 665 in Q1 2010 from 661 in Q1 2009
  • The states with the highest average credit scores for new vehicle loans were Minnesota (805), Wisconsin (797), Iowa (795), Colorado (791) and Connecticut (791)
  • The states with the lowest average credit scores for new vehicle loans were Mississippi (752), Texas (754), Louisiana (754), Nevada (755) and West Virginia (760)

A market insight snapshot featuring a more detailed analysis of Experian Automotive’s findings can be downloaded at

Experian Automotive’s quarterly credit trend analysis features market reporting data and analysis from Experian Automotive’s AutoCount® Risk Report, which analyzes automotive lending markets based on a uniform measurement of credit quality that segments markets by geography, credit score and vehicle registrations, among other factors. For more information on Experian Automotive’s AutoCount Risk Report, visit It also incorporates data from the Experian–Oliver Wyman Market Intelligence Reports, which provide topical, quarterly analysis; peer benchmarking options; and commentary on key issues facing the financial services industry. To subscribe to the Experian–Oliver Wyman Market Intelligence Reports, go to

About Experian Automotive
Experian Automotive, a part of Experian, delivers information services to manufacturers, dealers, finance and insurance companies, and consumers. Experian® helps automotive clients increase customer loyalty, target and win new business, and make better lending and vehicle purchase decisions. Its National Vehicle Database, housing more than 625 million vehicles, along with Experian’s credit, consumer and business information assets, meets the industry’s growing demand for an integrated information source. Experian’s advanced decision support services help clients turn this information into improved business results. Experian technology supports top automotive businesses, including eBay Motors,, CarMax and For more information on Experian Automotive and its suite of services, visit our Website at

Mike DeVilling
DeVilling Group for Experian Automotive
1 248 875 4207 Telephone Email

About Experian
Experian is the leading global information services company, providing data and analytical tools to clients in more than 90 countries. The company helps businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making. Experian also helps individuals to check their credit report and credit score and protect against identity theft.

Experian plc is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. Total revenue for the year ended March 31, 2010, was $3.9 billion.

Experian employs approximately 15,000 people in 40 countries and has its corporate headquarters in Dublin, Ireland, with operational headquarters in Nottingham, UK; Costa Mesa, California; and São Paulo, Brazil.

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