Experian Automotive: 30- and 60-day delinquencies and repossessions increase but remain below recession-level highs
Schaumburg, Ill., May 14, 2013 — Experian Automotive today announced that automotive loan delinquency and repossession rates increased in Q1 2013. According to the latest State of Automotive Finance report, 30-day auto loan delinquencies rose 1.3 percent, 60-day delinquencies increased 12.4 percent and repossessions rose 16.9 percent when compared with the previous year.
“Obviously, we never want to see a rise in delinquencies or repossessions, but when you compare the current findings with previous years, they are still lower than the recession-level rates,” said Melinda Zabritski, Experian’s senior director of automotive credit. “As we continue to move forward, we should start to see more increases as some of the subprime loans coming onto the books begin to deteriorate. However, one thing most lenders will agree upon is that today’s subprime borrower is less delinquent than those in the past.”
Findings from the report also showed that automotive repossessions jumped 16.9 percent, going from 0.43 percent in Q1 2012 to 0.50 percent in Q1 2013. While repossession rates for banks, captives and credit unions are all down year over year by as much as 14.9 percent, rates for finance companies increased by 52.1 percent. In spite of the increase, overall repossession rates are still relatively low when compared with the peak rate of 0.71 percent in Q1 2010.
In other findings:
• Total dollar volume of automotive loans grew by 9.6 percent in Q1 2013, reaching $726 billion, compared with $663 billion in Q1 2012
• Banks increased loan portfolios by $20 billion, finance companies by $18 billion, credit unions by $14 billion and captive finance companies by $12 billion
• Average charge-off amounts for defaulted loans were up from $6,739 in Q1 2012 to $7,401 in Q1 2013
• Charge-offs are still well below recession levels, however, as Q1 2009 average charge-offs were $10,126
Experian Automotive’s quarterly State of Automotive Finance report features market data and analysis from its AutoCount® Risk Report, as well as data from IntelliViewSM that is sourced from the Experian–Oliver Wyman Market Intelligence Reports.
Contact:
Roslyn Whitehurst
Experian Public Relations
1 714 830 5578
roslyn.whitehurst@experian.com
Twitter: @RozWhitehurst
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 www.Experian.com/Automotive.
About Experian
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, 2013, was US$4.7 billion. Experian employs approximately 17,000 people in 40 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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