Experian Automotive: Auto loan balances grow at fastest rate since 2006

Thirty-day delinquencies for Q2 hit lowest level in the past five years

Aug 12, 2015, 08:30 ET from Experian

SCHAUMBURG, Ill., Aug. 12, 2015 /PRNewswire/ -- Experian Automotive today announced that the total dollar volume for outstanding automotive loan balances grew by $92 million from the second quarter of 2014 to the second quarter of 2015. It was the largest dollar volume growth since 2006, according to Experian's latest State of the Automotive Finance Market report. Findings from the report showed that total loan balances also reached a record-high $932 billion in the second quarter of 2015, up from $840 billion in the second quarter of 2014.

In addition to rapid growth and record-setting dollar volumes, the automotive loan market showed increased stability, as consumers continued to make timely payments. In the second quarter of 2015, the 30-day delinquency rate dropped to the lowest level for a Q2 period in the past five years at 2.32 percent, down from 2.37 percent in the second quarter of 2014. The 60-day delinquency rate was up, but only slightly, from 0.603 percent in the second quarter of 2014 to 0.607 percent in the second quarter of 2015.

"The automotive loan market is working the way it's supposed to, with loans being made, vehicles purchased and payments made on time," said Melinda Zabritski, Experian's senior director of automotive finance. "The automotive loan market is gaining momentum while maintaining remarkable stability. It's a good sign for the economy overall."

Lenders maintained a balanced strategy in the second quarter of 2015. Subprime loans and deep-subprime loans grew as a share of the market but were balanced out by growth of the super-prime risk tier. The combined 20.02 percent share for subprime and deep subprime was up slightly from 19.92 percent in the second quarter of 2015. Super prime grew from 20.68 percent share in the second quarter of 2014 to 20.99 percent share in the second quarter of 2015.

"Overall, lenders are taking a balanced approach to their portfolios, with slight growth in subprime and deep subprime balanced by the uptick in loans to the super-prime risk tier," Zabritski continued. "There really is nothing alarming about the growth seen in subprime loans, provided consumers continue to make timely payments."

On a state-by-state level, the highest delinquency rates were found primarily in the South, while the states with the lowest rates typically were found in the Midwest and the Northwest.

30-day delinquencies

Highest

Lowest

Mississippi, 3.77%

Oregon, 1.03%

Washington, D.C., 3.49%

North Dakota, 1.11%

Louisiana, 3.16%

Minnesota, 1.18%

South Carolina, 2.91%

Washington, 1.21%

West Virginia, 2.80%

Idaho, 1.22%

 

60-day delinquencies

Highest

Lowest

Washington, D.C., 1.02%

Oregon, 0.25%

Mississippi, 0.94%

North Dakota, 0.25%

Louisiana, 0.87%

Vermont, 0.27%

South Carolina, 0.74%

Washington, 0.27%

Alabama, 0.71%

Iowa, 0.27%


Idaho, 0.27%

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.

About Experian
We are the leading global information services company, providing data and analytical tools to our clients around the world. We help businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making. We also help people to check their credit report and credit score, and protect against identity theft. In 2014, we were named by Forbes magazine as one of the "World's Most Innovative Companies."

We employ approximately 17,000 people in 39 countries and our corporate headquarters are in Dublin, Ireland, with operational headquarters in Nottingham, UK; California, US; and Sao Paulo, Brazil. 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, 2015, was US$4.8 billion.

To find out more about our company, please visit http://www.experianplc.com or watch our documentary, "Inside Experian."

Experian and the Experian marks used herein are trademarks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein are the property of their respective owners.

Contact:

Roslyn Whitehurst
Experian Public Relations
1 714 830 5578
roslyn.whitehurst@experian.com
Twitter: @RozWhitehurst

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SOURCE Experian



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