SCHAUMBURG, Ill., March 4, 2015 /PRNewswire/ -- Experian Automotive
today announced that consumers are relying on financing more than
ever to buy their next vehicle. According to its latest State of
the Automotive Finance Market report, the percentage of new
vehicles purchased with financing in the fourth quarter of 2014
increased over the previous year to reach 84 percent. Used vehicles
that were financed reached a record high of 55.2 percent.
Furthermore, the study shows that the average loan amount for a
new vehicle in the fourth quarter of 2014 once again hit its
highest level on record, reaching $28,381. This represents a more than $950 increase from a year ago and a $582 increase from the previous quarter. For used
vehicles, the average loan amount increased $437 from last year to reach $18,411.
"In most parts of the country, vehicles are viewed as a
necessity to everyday life, which is why we continue to see
consumers willing to take out larger loans as the average price of
vehicles continues to rise," said Melinda
Zabritski, Experian's senior director of automotive finance.
"As more consumers lean on financing, it's important for them to
consider all of the factors involved, including monthly payments,
interest rates and loan terms. These insights will enable them to
have a better understanding of their potential payment obligation
and take the appropriate action in order to make the vehicle fit
within their monthly budget and more easily meet payment terms
throughout the life of the loan."
Findings from the report also show that leasing continued to
gain traction, as it jumped 3.6 percent from a year ago to reach
nearly 30 percent of all new vehicles financed in the quarter.
In addition to the number of leases increasing in the quarter,
the study shows that it was slightly more affordable and easier to
obtain one. The average monthly lease payment decreased
$12 from a year ago to reach
$408 in Q4 2014. What's more, the
average new-vehicle lessee had an average credit score of 717 in Q4
2014, down two points over the same time period.
In other findings:
- The average credit score for a new-vehicle loan dropped 3
points in Q4 2014 to reach 712
- The average credit score for a used vehicle loan increased 2
points in the quarter to reach 648
- In the fourth quarter of 2014, the average monthly payment for
a new vehicle hit $482 — its highest
level on record
- Interest rates for new-vehicle loans crept up in Q4 2014 to
4.56 percent
- Loan terms for new and used vehicles increased from a year ago
to reach 66 months and 62 months, respectively
- Captives were the only lender type to see an increase in market
share year over year
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 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, 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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SOURCE Experian Automotive