SCHAUMBURG, Ill., Feb. 19, 2015 /PRNewswire/ -- Experian Automotive
today announced that the total outstanding balance on open
automotive loans continued to rise in the fourth quarter of 2014,
reaching an all-time high of $886
billion. According to its latest State of the Automotive
Finance Market report, the volume of open loans increased
across all risk tiers. However, despite the increases in volume,
market share for subprime and deep subprime loans remained at
relatively low levels, as much of the growth from a year ago was
seen in the super-prime risk segment.
"Whenever there is an uptick in the number of loans to subprime
and deep-subprime customers, there is the potential for a 'sky is
falling' type of reaction," said Melinda
Zabritski, Experian's director of automotive finance. "The
reality is we are looking at a remarkably stable automotive-loan
market, in part because consumers are continuing to stay on top of
their payments. With that said, keeping an eye on consumer payment
behavior and the lending community's appetite for risk is important
because these types of insights help the industry make better
decisions that may affect loan terms or interest rates in the
future."
While the volume of loans in the subprime and deep-subprime risk
tiers were up from last year — 3.83 percent and 5.60 percent,
respectively — the combined market share for the two was down
slightly at 20.31 percent. On the other end of the spectrum, the
volume of loans to super-prime consumers was up 7.90 percent from a
year ago. It also was the only risk tier to see a year-over-year
increase in market share.
Further findings from the report showed that 30- and 60-day
automotive loan delinquencies remained flat during the quarter.
Thirty-day delinquencies were up just 1 basis point from a year
ago, going from 2.61 percent to 2.62 percent, while 60-day
delinquencies dropped slightly, going from 0.73 percent 0.72
percent over the same time period.
At a state level, the highest delinquency rates were found
primarily in the South, while the states with the lowest rates were
typically found in the Midwest and Northwest.
|
30-day
delinquencies
|
|
Highest
|
Lowest
|
|
Mississippi
|
4.46
percent
|
North
Dakota
|
1.23
percent
|
|
Washington,
D.C.
|
3.68
percent
|
Alaska
|
1.47
percent
|
|
Louisiana
|
3.59
percent
|
Minnesota
|
1.48
percent
|
|
South
Carolina
|
3.52
percent
|
Oregon
|
1.48
percent
|
|
Alabama
|
3.49
percent
|
South
Dakota
|
1.52
percent
|
|
60-day
delinquencies
|
|
Highest
|
Lowest
|
|
Washington,
D.C.
|
1.47
percent
|
North
Dakota
|
0.33
percent
|
|
Mississippi
|
1.27
percent
|
Minnesota
|
0.39
percent
|
|
Louisiana
|
1.15
percent
|
Oregon
|
0.39
percent
|
|
Alabama
|
1.03
percent
|
Washington
|
0.40
percent
|
|
South
Carolina
|
0.99
percent
|
Alaska and New
Hampshire
|
0.44
percent
|
Experian's quarterly State of the Automotive Finance
Market report leverages information from its
AutoCount® database, which enables insights into the
automotive lending market by geography, credit score and vehicle
registrations, among other factors. For more information on the
latest State of the Automotive Finance Market report, please
visit http://bit.ly/1LbNl1K.
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 16,000 people in 39 countries and our
corporate headquarters are in Dublin,
Ireland, with operational headquarters in Nottingham, UK; California, US; and São 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, 2014, 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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visit:http://www.prnewswire.com/news-releases/total-outstanding-automotive-loan-balances-reach-all-time-high-subprime-and-deep-subprime-market-share-remain-at-low-levels-300038154.html
SOURCE Experian Automotive