SCHAUMBURG, Ill., May 18, 2015 /PRNewswire/ -- Experian
Automotive today announced that the percentage of automotive loans
that fell within the subprime and deep subprime risk categories
made up 19.7 percent of the market, reaching its lowest share since
2012. According to the State of the Automotive Finance
Market report for Q1 2015, subprime loans made up 16.2 percent
of the market, while deep subprime loans captured 3.5 percent.
"Over the last year, there has been a tremendous amount of
conversation around the growth in subprime loans, and the concern
over the automotive finance industry approaching a potential
'bubble,'" said Melinda Zabritski,
senior director of automotive finance for Experian. "While it's
true that the volume of subprime loans is up, the same can be said
for the rest of the risk categories. It's important to keep in mind
that, while we should continue to watch them, the percentage of
subprime loans make up a small portion of the market."
Findings from the report also showed that automotive lenders
continued to grow their overall portfolios, as total outstanding
balances for automotive loans reached a record-high $905 billion in the first quarter 2015, up 11.3
percent from a year ago.
Additionally, despite an increase in the numbers of loans put
into play, both 30- and 60-day delinquencies saw slight decreases
in the first-quarter report. Thirty-day delinquencies were down 4.1
percent from a year ago, while 60-day delinquencies dropped 3.2
percent over the same time period.
"The current stability in the automotive loan market is a
testament to consumers making timely payments on outstanding loans,
which is evident in the improvement in delinquency rates,"
continued Zabritski. "While the market is in a positive position
right now, dealers and lenders will want to want to keep an eye on
these data sets and use them for the good of their business, as the
insights enable them to make better decisions in terms of loan
terms and interest rates."
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
|
60-day
delinquencies
|
|
Highest
delinquencies
|
Lowest
delinquencies
|
Highest
delinquencies
|
Lowest
delinquencies
|
|
Mississippi
|
3.1%
|
North
Dakota
|
0.9%
|
Washington,
D.C.
|
1.0%
|
South
Dakota
|
0.2%
|
|
Washington,
D.C.
|
2.9%
|
Oregon
|
1.0 %
|
Mississippi
|
0.9%
|
Oregon
|
0.2%
|
|
Louisiana
|
2.7%
|
South
Dakota
|
1.0%
|
Louisiana
|
0.8%
|
Minnesota
|
0.3%
|
|
South
Carolina
|
2.6%
|
Washington
|
1.1%
|
New Mexico
|
0.7%
|
Arkansas
|
0.3%
|
|
Alabama
|
2.6%
|
Minnesota
|
1.1%
|
Alabama
|
0.7%
|
Iowa
|
0.3%
|
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 Automotive