Tag: auto loans
According to Experian’s latest State of the Automotive Finance Market report, interest rates for new auto loans dropped to 4.27 percent — the lowest rate on record. In addition to increasing new vehicle sales, the historically low interest rates helped consumers finance a larger balance, with the average new vehicle loan coming in at $26,719 for Q3 2013 — the highest average amount financed since 2008. Sign up to access our quarterly analysis of the latest automotive finance trends Source: Experian Automotive: Interest rates for auto loans hit all-time low, while average amount financed reaches highest point since 2008
Findings from Experian's latest State of the Automotive Finance Market analysis showed the average loan term for a new vehicle jumped to an all-time high of 65 months in Q4 2012, up from 63 months in Q4 2011. More consumers also are opting for leases, with the lease share of new auto financing increasing to 24.79 percent, up from 10.45 percent in Q4 2011.
Loans to customers in the nonprime, subprime and deep-subprime credit risk tiers accounted for more than one in four new vehicle loans in Q2 2012. With 25.41 percent of all new vehicle loans opened by customers in the nonprime, subprime and deep-subprime credit risk tiers, loans for this group were up 14 percent when compared with Q2 2011. Listen to our recent Webinar on Q2 2012 automotive credit trends Source: Experian Automotive's quarterly credit trend analysis
Total balances of automotive loan portfolios rose for all types of lending organizations in Q2 2012, reaching $682 billion, compared with $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. The average 30 and 60 day delinquency rate fell slightly year over year across all types of lending organizations, including banks, captive finance, finance companies and credit unions. Sign up for our Sept. 6th Webinar for more information on Q2 2012 automotive credit trends. Source: Experian press release dated — Aug 8, 2012: Loan delinquencies and automotive repossessions drop in Q2, according to Experian Automotive.
With interest rates at their lowest level since 2008 and an increasingly competitive market, automotive lenders are increasing their willingness to make loans between six and seven years long: Auto loans of 73 to 84 months accounted for 14.1 percent of all new vehicle loans, up 47 percent from Q4 2010 Auto loans of 73 to 84 months accounted for 9.04 percent of all used vehicle loans, up 41 percent from Q4 2010 View our recent Webinar on the Q4 2011 state of the automotive market. Source: Experian Automotive's quarterly credit trend analysis. Download the quarterly studies and white paper.
Lenders continued to increase their appetite for risk in Q2 2011, with new vehicle loans for customers with credit outside of prime increasing by 22.4 percent compared with the previous year. In Q2 2011, 22.29 percent of all new vehicle loans went to customers in the nonprime, subprime and deep-subprime categories, increasing from 18.21 percent in Q2 2010. The largest percentage increase in new car loans was in the category with the highest risk: deep subprime, which jumped 44.1 percent, moving from 1.48 percent of all new vehicle loans in Q2 2010 to 2.13 percent in Q2 2011. For more information on Experian Automotive's AutoCount® Risk Report, visit www.autocount.com Source: Automotive quarterly credit trends
Lenders are increasing loans to credit-challenged customers. According to Experian's quarterly automotive credit analysis, 21.87 percent of all new vehicle loans went to customers in the nonprime, subprime and deep-subprime categories. The largest percentage increases were in the two highest-risk segments: deep subprime, which jumped 17.3 percent, and subprime, which jumped 17.8 percent. Nonprime loan share increased 12.5 percent. View our recent Webinar on the state of the automotive market. Source: Experian Automotive's quarterly credit trend analysis. Download the quarterly studies and white papers.