Findings from the most recent Experian State of the Automotive Finance Market report show outstanding automotive loan balances increased 11 percent from Q4 2012, reaching $798.5
billion in Q4 2013 — the highest level since 2007.
The increase in open loans spanned all lending types. Finance companies showed the greatest increase (21.2 percent), followed by credit unions (13.2 percent), banks (10.5 percent) and captives (5.3 percent). Given the continued growth trend, lenders should consider utilizing market intelligence tools such as peer benchmarking to stay ahead of the competition and adjust lending strategies to the current environment.