|By PR Newswire||
|February 19, 2014 08:30 AM EST||
SCHAUMBURG, Ill., Feb. 19, 2014 /PRNewswire/ -- Experian Automotive today announced that consumers continued to make their loan payments on time in Q4 2013. According to its latest State of the Automotive Finance Market report, 30-day automotive loan delinquencies were down 3.5 percent (going from 2.72 percent in Q4 2012 to 2.63 percent in Q4 2013), and 60-delinquencies remained flat at 0.74 percent.
Additional findings from the report show outstanding automotive loan balances increased 11 percent from Q4 2012, reaching $798.5 billion in Q4 2013 (the highest level since Experian Automotive starting publically reporting the data in 2007). The increase in open loans spanned across all lending types with finance companies showing the greatest increase of 21.2 percent, followed by credit unions with 13.2 percent, then banks with 10.5 percent and captives by 5.3 percent.
"The automotive finance market continues to move along at a very healthy pace, and we are pleasantly surprised by the continued drop in delinquencies," said Melinda Zabritski, Experian Automotive's senior director of automotive finance. "The record level of open loan balances combined with the reduction in late payments shows that consumers who have purchased a vehicle are not only reliant on financing, but also firmly committed to making their payments on time."
The report also showed that repossessions were up 42.8 percent in Q4 2013, going from 0.46 percent in Q4 2012 to 0.65 percent in Q4 2013. However, the increase was driven entirely by finance companies that provide a significant majority of their loans to credit challenged customers. In Q4 2013, finance companies nearly doubled their repossession rate, jumping to 2.84 percent from 1.61 percent in Q4 2012.
Other lender types saw their repossession rates fall slightly:
- Banks went from 0.24 percent in Q4 2012 to 0.23 percent in Q4 2013
- Captives went from 0.36 percent in Q4 2012 to 0.34 percent in Q4 2013
- Credit unions went from 0.16 percent in Q4 2012 to 0.15 percent in Q4 2013
"The increase in repossessions by finance companies could simply be attributed to a tightening of repo standards," Zabritski continued. "Aside from this increase, we are seeing the rest of the automotive finance industry trend positively, creating optimism for a strong 2014."
In other findings:
- Open loans in the nonprime, subprime and deep subprime segments were up to 36.2 percent market share in Q4 2013 from 35.7 percent in Q4 2012
- The percentage of loan dollars that are 30 days delinquent rose just slightly, from 2.22 percent in Q4 2012 to 2.26 percent in Q4 2013
- The percentage of loan dollars that are 60 days delinquent rose slightly from 0.55 percent in Q4 2012 to 0.58 percent in Q4 2013
- The average charge-off amount for loans gone bad jumped from $7,277 in Q4 2012 to $8,520 in Q4 2013
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.
Experian® is the leading global information services company, providing data and analytical tools to clients around the world. The Group helps businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making. Experian also helps individuals to check their credit report and credit score, and protect against identity theft.
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, 2013, was US$4.7 billion. Experian employs approximately 17,000 people in 40 countries and has its corporate headquarters in Dublin, Ireland, with operational headquarters in Nottingham, UK; California, US; and São Paulo, Brazil.
For more information, visit http://www.experianplc.com.
Experian and the Experian marks used herein are service marks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein are the property of their respective owners.
SOURCE Experian Automotive
The 4th International DevOps Summit, co-located with16th International Cloud Expo – being held June 9-11, 2015, at the Javits Center in New York City, NY – announces that its Call for Papers is now open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and ...
Oct. 31, 2014 08:15 PM EDT Reads: 2,159
SYS-CON Events announced today that SOA Software, an API management leader, will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. SOA Software is a leading provider of API Management and SOA Governance products that equip business to deliver APIs and SOA together to drive their company to mee...
Oct. 31, 2014 07:15 PM EDT Reads: 2,077
As cloud gives an opportunity to businesses to buy services externally - how is cloud impacting your customers? In his General Session at 15th Cloud Expo, Fabio Gori, Director of Worldwide Cloud Marketing at Cisco, will provide answers to big questions: Do you see hybrid cloud as where the world is going? What benefits does it bring? And how does Cisco connect all of these clouds? He will also te...
Oct. 31, 2014 07:00 PM EDT Reads: 929
Can we look to the paradigm of cloud computing from a completely different perspective? In his General Session at 15th Cloud Expo, Gundars Kulups, Sales Director at DEAC, will discuss what we can learn from our dining habits when choosing a cloud solution. Gundars Kulups is Sales Director at DEAC, full service data center operator. An IT expert, he specializes in European countries and has worke...
Oct. 31, 2014 07:00 PM EDT Reads: 791
SYS-CON Events announced today that TMCnet has been named “Media Sponsor” of SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Technology Marketing Corporation (TMC) is the world's leading business to business and integrated marketing media company, servicing niche markets within the communications and t...
Oct. 31, 2014 06:30 PM EDT Reads: 917
SYS-CON Events announced today that Aria Systems, the recurring revenue expert, has been named "Bronze Sponsor" of SYS-CON's 15th International Cloud Expo®, which will take place on November 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Aria Systems helps leading businesses connect their customers with the products and services they love. Industry leaders like Pitney Bowes, E...
Oct. 31, 2014 06:30 PM EDT Reads: 2,156
We live in a time when seconds – even milliseconds – can have a dramatic economic impact on your company’s future. With technology being the primary conduit for consumer interaction, the user experience is at center stage. User experience will be a deciding factor in separating the future winners from the losers. By building more speed and agility into the application delivery process, DevOps prom...
Oct. 31, 2014 06:00 PM EDT Reads: 1,403
SYS-CON Events announced today that AgilePoint, the leading provider of Microsoft-centric Business Process Management software, will exhibit at SYS-CON's 2nd International @ThingsExpo which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. AgilePoint is the leading provider of Microsoft-based Business Process Management (BPM) software products, has 1,...
Oct. 31, 2014 05:00 PM EDT Reads: 1,190
SYS-CON Events announced today that Parasoft will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. For 27 years, Parasoft has researched and developed software solutions that help organizations deliver defect-free software efficiently. By integrating Development Testing, API/cloud/SOA/composi...
Oct. 31, 2014 05:00 PM EDT Reads: 1,062
The Internet of Things (IoT) promises to evolve the way the world does business; however, understanding how to apply it to your company can be a mystery. Most people struggle with understanding the potential business uses or tend to get caught up in the technology, resulting in solutions that fail to meet even minimum business goals. In his session at Internet of @ThingsExpo, Jesse Shiah, CEO / ...
Oct. 31, 2014 04:00 PM EDT Reads: 1,583