One in four auto loans are now nonprime or subprime

Posted on Sep 16 2012 by

Loans to customers in the nonprime, subprime and deep-subprime credit risk tiers accounted for more than one in four new vehicle loans in Q2 2012. With 25.41 percent of all new vehicle loans opened by customers in the nonprime, subprime and deep-subprime credit risk tiers, loans for this group were up 14 percent when compared […]


Auto loan volumes rise as delinquencies continue to decline

Posted on Aug 19 2012 by

Total balances of automotive loan portfolios rose for all types of lending organizations in Q2 2012, reaching $682 billion, compared with $646 billion in Q2 2011. Despite this strong growth, overall loan balances still lag behind prerecession levels. In Q2 2007, outstanding loan balances reached $701 billion. The average 30 and 60 day delinquency rate […]


Study shows auto loan balances increasing

Posted on May 30 2012 by

Outstanding automotive loan balances were at $708 billion in Q1 2012 – a figure last seen two years ago. Banks and captive auto lenders hold two-thirds of the outstanding balances (34 percent and 33 percent respectively), while credit unions hold 21 percent. Listen to the latest automotive credit trends by attending our upcoming webinar. Source: […]


Auto lenders originating longer loans

Posted on Apr 12 2012 by

With interest rates at their lowest level since 2008 and an increasingly competitive market, automotive lenders are increasing their willingness to make loans between six and seven years long: Auto loans of 73 to 84 months accounted for 14.1 percent of all new vehicle loans, up 47 percent from Q4 2010 Auto loans of 73 […]


Average credit score drops for both new and used auto loans

Posted on Apr 06 2012 by

The automotive loan market continued to improve, with lenders showing more willingness to lend outside of prime. In Q4 2011, average credit scores for new and used auto loans dropped when compared with Q4 2010. Additionally, the percentage of loans to customers with nonprime, subprime or deep-subprime credit scores increased. Average credit scores for new […]


Automotive loan originations shift into high gear

Posted on Mar 23 2012 by

Lenders continued to increase their appetite for risk in Q2 2011, with new vehicle loans for customers with credit outside of prime increasing by 22.4 percent compared with the previous year. In Q2 2011, 22.29 percent of all new vehicle loans went to customers in the nonprime, subprime and deep-subprime categories, increasing from 18.21 percent […]


Auto loan originations increase significantly for some credit tiers

Posted on Mar 16 2012 by

Lenders are increasing loans to credit-challenged customers. According to Experian’s quarterly automotive credit analysis, 21.87 percent of all new vehicle loans went to customers in the nonprime, subprime and deep-subprime categories. The largest percentage increases were in the two highest-risk segments: deep subprime, which jumped 17.3 percent, and subprime, which jumped 17.8 percent. Nonprime loan […]


Growth strategies for today’s consumer market

Posted on Mar 14 2012 by

In 2010, lenders began to change their focus from maintaining to growing portfolios. Most strategies focused on marketing to the least risky tiers of consumers as lenders tested marketing strategies in an unfamiliar economic environment. In 2011, the focus is on expanding that marketable universe and determining how to profitably grow, while managing risk across […]