Loan delinquencies and automotive repossessions drop in Q2, according to Experian Automotive
Schaumburg, Ill., Aug. 08, 2012 — Experian Automotive today announced that consumers continued to make timely automotive loan payments in Q2 2012, lowering the average delinquency rate across all lending organizations, including banks, captive finance arms, finance companies and credit unions.
The analysis showed that the 30-day delinquency rate was 2.52 percent, compared to 2.59 percent in Q2 2011, and the 60-day delinquency rate was 0.58 percent in Q2 2012, down from 0.60 percent in Q2 2011. Vehicle repossessions also dropped, coming in at 0.43 percent in Q2 2012, compared to 0.59 percent in Q2 2011, which is a 27.9 percent drop year over year.
“Consumers continue to do an excellent job of paying back their vehicle loans in a timely fashion, and that’s good news for everyone in the industry,” said Melinda Zabritski, director of automotive lending for Experian Automotive. “Both 30- and 60-day delinquencies are at historic lows, and the percentage of money at risk has dropped as well. This gives lenders needed stability, which filters through the auto industry to consumers in the form of easier-to-obtain loans.”
Total balances of loan portfolios also rose for all types of lending organizations in Q2 2012, reaching $682 billion, compared to $646 billion in Q2 2011. Despite this strong growth, overall loan balances still lag behind prerecession levels. In Q2 2007, outstanding loan balances reached $701 billion.
“Automotive loan portfolios continued their strong comeback in Q2 2012, as delinquencies continued to drop and total dollar volumes continued to rise,” Zabritski said. “Since the automotive loan industry is highly interdependent between banks and retailers, this continued strong performance for loan portfolios is good for automotive retailers and consumers alike.”
Complete findings from the State of the Automotive Finance Market Q2 2012 credit trends analysis will be presented in a Webinar at 11 a.m. Pacific/1 p.m. Central/2 p.m. Eastern on Sept. 6. If you would like to register for the event, visit www.ExperianAutomotive.com.
Experian Automotive’s quarterly credit trend analysis features market reporting data and analysis from its 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. 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.
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About Experian Automotive
Experian Automotive provides information services and market intelligence that enables results-driven professionals to gain the fullest possible understanding of the market, the vehicles and the people who buy them. Its North American Vehicle DatabaseSM houses data on nearly 700 million vehicles and, when combined with Experian’s credit, consumer and business information, provides an integrated perspective into the automotive marketplace. Experian Automotive’s AutoCheck® vehicle history reports provide dealers and consumers with in-depth information, allowing them to confidently understand, compare and select the right vehicles. For more information on Experian Automotive and its suite of services, visit our Website at http://www.ExperianAutomotive.com.
Experian® is the leading global information services company, providing data and analytical tools to clients around the world. The Group 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, 2012 was $4.5 billion. Experian employs approximately 17,000 people in 44 countries and has its corporate headquarters in Dublin, Ireland, with operational headquarters in Nottingham, UK; California, US; and São Paulo, Brazil.
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