Experian Automotive: Auto loan balances reach all-time high of $782.9 billion, up $103 billion from Q3 2012
Thirty-day auto loan delinquencies drop, 60-day delinquencies remain flat
Schaumburg, Ill., Nov. 13, 2013 — Experian Automotive today announced that outstanding automotive loan balances have reached a record high since the company began publicly reporting the data seven years ago. According to its latest State of the Automotive Finance Market report, outstanding balances on automotive loans reached $782.9 billion, up $103 billion from Q3 2012.
Additional findings from the report showed 30-day automotive loan delinquencies were down 3.4 percent over last year, going from 2.67 percent in Q3 2012 to 2.58 percent in Q3 2013. Sixty-day delinquencies remained flat.
“The combination of higher loan balances and relatively flat loan delinquencies is good news for everyone connected to the automotive industry, including consumers, lenders, retailers and manufacturers,” said Melinda Zabritski, senior director of Automotive Lending for Experian Automotive. “The availability of credit, combined with consumers’ continued strong performance repaying their loans, has a positive spiral effect. It allows lenders to slowly but surely take on additional risk while providing more access to loans and paving the way for higher auto sales.”
Automotive loan balances are growing across the country. Those showing the fastest percentage growth year over year included California (up 29.3 percent), Texas (up 26.3 percent) and Nevada (up 26.0 percent). The states with the slowest growth rates year over year included Hawaii (up 12.4 percent), Wyoming (up 12.3 percent) and Michigan (up 6.8 percent).
States with the steepest decline in the loan balances currently 30 days delinquent year over year included Hawaii (down 12.75 percent), Vermont (down 11.69 percent) and Oregon (down 11.64 percent). States with the biggest jump in 30-day automotive loan balance delinquencies year over year included Rhode Island (up 18.53 percent), Wyoming (up 11.98 percent) and Alaska (up 10.24 percent).
One of the few dark clouds in Q3 2013 was the sharp increase in vehicle repossessions for the quarter. In Q3 2012, the repossession rate was 0.40 percent, but it jumped to 0.62 percent in Q3 2013 — a 54.4 percent increase.
However, the increase in repossessions was limited entirely to finance companies, which typically provide loans to the subprime market. Finance companies saw their repossession rate jump 124.9 percent, going from 1.18 percent in Q3 2012 to 2.66 percent in Q3 2013. Repossession rates for captive finance companies, banks and credit unions all dropped slightly in the quarter.
In other findings:
• Outstanding loans in the nonprime, subprime and deep-subprime segments were up, but only slightly (36 percent in Q3 2013 from 35.9 percent in Q3 2012)
• The percentage of loan dollars that are 30 days delinquent rose slightly (2.16 percent in Q3 2012 to 2.17 percent in Q3 2013)
• The percentage of loan dollars that are 60 days delinquent rose slightly (0.50 percent in Q3 2012 to 0.52 percent in Q3 2013)
• The average charge-off amount for loans gone bad jumped from $7,026 in Q3 2012 to $7,770 in Q3 2013
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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.experian.com/Automotive.
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.
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