The auto finance market is always a hot topic for discussion. After all, a vehicle loan is the second largest purchase that most consumers will ever make (the first being a home).

Following the credit crunch, analysts and consumers alike watched the auto finance market with great interest to see how auto lending would be affected. The answer? Well, according to Experian Automotive’s Q3 State of the Automotive Finance Market analysis, subprime financing and leasing are continuing to make a strong comeback, which is good news for everyone.

According to Melinda Zabritski, Experian Automotive’s director of credit, “Expanding loans to lower-risk tiers opens the market for more car shoppers, while an increase in leasing means it is easier for consumers to get more vehicle for a lower monthly payment. Both of these trends are positive signs of a strong and recovering auto finance market, which ultimately benefits the consumer and the entire auto industry.”

Experian Automotive’s quarterly report looks at several areas of the automotive finance market to show how things have changed on a year-to-year basis. In Q3, market share for nonprime, subprime and deep-subprime automotive loans for new vehicles grew by 13.6 percent and new vehicle leasing grew by 7.53 percent year over year.

The analysis also looked at the top makes that consumers financed. In Q3, Toyota grabbed top honors, claiming 14.09 percent of all new vehicles financed. Ford was second with 13.16 percent, and Chevrolet was third with 11.10 percent.

Other areas covered in this quarter’s analysis include average consumer credit scores for new and used vehicle loans, average dollar amounts financed, 30- and 60-day delinquencies, repossessions, as well as which new vehicles had auto loans with the highest average consumer credit scores.

For more information on this report and other automotive-related insights, please visit ExperianAutomotive.com or check out our press release.

Small businesses are getting a lot of attention right now. With the presidential election, Affordable Care Act and talk of the looming fiscal cliff, small business health and survival concerns have been widely discussed across the United States.

Earlier this year, Experian’s Business Information Services and Moody’s Analytics, a leading independent provider of economic forecasting, joined forces to create a business index and detailed report that provides insight into the health of U.S. businesses. The Experian/Moody’s Analytics Small Business Credit Index is reported quarterly to show fluctuations in the market and discuss factors that are impacting the business economy.

The recently released Small Business Credit Index for third quarter 2012 showed that small business credit quality began deteriorating in Q3 after four consecutive quarters of improvement. Findings from the report also indicated that severely delinquent account balances and slower consumer spending growth posed a significant challenge to small businesses that will likely continue throughout the rest of 2012 and most of 2013.

Details from the analysis also highlighted several other areas affecting small business including job growth, payment trends, consumer spending, raising home prices and unemployment.

To download a full copy of the report, please visit www.experian.com/SmallBusinessCreditIndex

Whether you own the largest pickup or the smallest hybrid on the market, one thing remains clear – folks in the U.S. love their vehicles.

In the recently released Loyalty and Market Trends Report by Experian Automotive, we looked at several key trends that highlight who is buying what, and which auto makers received highest marks in loyalty in Q2.

The infographic here reveals that Toyota took the top spot in Corporate Loyalty* for the first time since Q3 2009, and that the Chevrolet Sonic was top model in Brand Loyalty. The analysis also found that Ford owners were the most Brand Loyal overall, landing six models in the top ten.

The report also highlighted several other areas of the Auto industry including registration trends, market share shifts and changes in the average vehicle age.

All of this information will be presented in a free webinar on Oct. 11 at 11am PT / 1pm CT / 2pm ET. If you would like to attend the event, visit www.ExperianAutomotive.com to register. If you can’t make the live event, a recording will be available on the site for download.

*To measure loyalty, we looked at vehicle owners and their subsequent vehicle purchase. For example, if you owned an Acura, then purchased a Honda, you would be considered Corporate Loyal, but not Brand Loyal. To be Brand Loyal, you need to buy another Acura.

Experian Automotive today announced that midrange cars were the highest-selling vehicle segment in the first half of 2012, according to its latest vehicle registration analysis.

The analysis also showed that the Toyota Camry topped the list of best-selling vehicles for the first half, with the Ford F-150 coming in a close second. In the first half of 2011, the F-150 was the best-selling vehicle, with the Camry coming in second.

High-level findings from the analysis showcase the top-selling vehicle segments for the first half of the year and highlight the top vehicle brands in each category.

“The first half of 2012 showed a significant increase (11.9 percent) in vehicle registrations compared to the previous year,” said Jeffrey Anderson, director of consulting and analytics for Experian Automotive.

“Lower interest rates and dealer incentives have certainly been great motivators for consumers in need of a new vehicle to purchase one. Additionally, higher gas prices and new model redesigns could be pushing consumers to look at small to midrange cars, instead of the larger vehicle segments.”

The complete top 10 best-selling vehicles for the first half of 2012 include:

• Toyota Camry
• Ford F-150
• Honda Civic
• Nissan Altima
• Honda Accord
• Toyota Corolla
• Honda CR-V
• Chevrolet Silverado 1500
• Ford Fusion
• Chevrolet Malibu

Interestingly, the analysis also showed that while the Ford F-150 was the second highest-selling vehicle in the first half, it was the top seller in 19 states, with Texas making up more than 17 percent of its total sales. The Toyota Camry claimed the second most states (13), with California accounting for the largest percentage of sales (13 percent).

When looking at growth comparing the first half of 2012 with the first half of 2011, the fastest-growing segment was hybrid cars, with a 61 percent increase. On the vehicle level, the Kia Optima saw a 92.7 percent increase in registrations in the same time frame.

For more information about Experian Automotive’s industry trends research or leading products and services, please visit ExperianAutomotive.com or follow us on Twitter at @Experian_Auto.

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Experian Automotive today announced that loans to customers in the nonprime, subprime and deep-subprime risk tiers accounted for more than one in four new vehicle loans in Q2 2012.

With 25.41 percent of all new vehicle loans to customers in the nonprime, subprime and deep subprime risk tiers, loans to credit-challenged customers were up 14 percent compared to Q2 2011.

In addition, new vehicle loans to credit-challenged customers now are higher than they were in Q2 2007 (24.96 percent) and Q2 2008 (24.49 percent) just prior to the financial market crisis.

However, the Q2 analysis also shows that lenders are still taking a cautious approach, keeping loan-to-value (LTV) ratios (the amount of money paid over the life of a loan versus the purchase price of the vehicle) lower than they were a year ago.

For new vehicles, the average LTV ratio was 109.55 percent in Q2 2012, compared to 115.65 percent in Q2 2011.

“Despite the rise in subprime loans overall, there is still a strong sense of managing risk,” said Melinda Zabritski, director of automotive credit for Experian Automotive.

“Because the overall lending environment has improved, lenders are making loans available to a wider range of customers. This is good for manufacturers and dealers, as it allows them to sell more vehicles. However, the lower loan-to-value ratios show that lenders are not willing to throw caution to the winds.”

Additionally, the Q2 report showed that the average customer credit score for new vehicle loans dropped nine points, from 762 in Q2 2011 to 753 in Q2 2012. For used vehicle loans, the average customer credit score also dropped nine points from 671 in Q2 2011 to 662 in Q2 2012.

• The average amount financed for a new vehicle increased $474, from $25,240 in Q2 2011 to $25,714 in Q2 2012.
• The average amount financed for a used vehicle jumped $370 from $17,063 in Q2 2011 to $17,433 in Q2 2012.
• The average monthly payment for both new and used vehicles was relatively flat, with new vehicles rising by $2, from $450 in Q2 2011 to $452 in Q2 2012. For used vehicles, monthly payments jumped $4, from $347 in Q2 2011 to $351 in Q2 2012.

Complete findings from the State of the Automotive Finance Market Q2 2012 credit trends analysis will be presented in a Webinar at 11 a.m. Pacific/1 p.m. Central/2 p.m. Eastern on Sept. 6. If you would like to register for the event, visit www.ExperianAutomotive.com.

Experian Automotive’s quarterly credit trend analysis features market reporting data and analysis from its AutoCount® Risk Report, which analyzes automotive lending markets based on a uniform measurement of credit quality that segments markets by geography, credit score and vehicle registrations, among other factors.

It also incorporates data from the Experian–Oliver Wyman Market Intelligence Reports, which provide topical, quarterly analysis; peer benchmarking options; and commentary on key issues facing the financial services industry.

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Experian Automotive today announced that Toyota Motor Corporation and Honda Motor Company made strong comebacks in corporate loyalty in Q1 2012 after seeing their respective rankings drop significantly after the March 2011 earthquake and tsunami in Japan.

According to the Experian Automotive industry market trends and loyalty report, Toyota finished third in overall corporate loyalty, with 45.7 percent of their customers who returned to market during Q1 2012 purchasing or leasing another Toyota vehicle. Toyota’s corporate loyalty ranking had dropped to 41.8 percent in Q2 2011, the first full quarter after the earthquake and tsunami. Honda’s corporate loyalty was 42.1 percent in Q1 2012, after falling to 36.4 percent in Q3 2011.

Overall, General Motors Company and Ford Motor Company finished first and second in corporate loyalty during Q1 2012 at 48.4 percent and 47.4 percent, respectively.

“While General Motors and Ford continue to battle for the top spot in corporate loyalty, Toyota and Honda were both able to significantly tighten the race in the first quarter of 2012,” said Jeffrey Anderson, Experian Automotive’s director of analytics and consulting.

“After the earthquake and tsunami, the Japanese OEMs suffered significant production disruptions, and many of their customers opted to go to another manufacturer when they returned to market. The drop in corporate loyalty appears to have been a temporary phenomenon, however, as their corporate loyalty is returning to pre-earthquake levels.”

Chrysler Group, LLC, which saw its corporate loyalty ranking rise from 32.6 percent in Q1 2011 to 36.2 percent in Q1 2012, posted the biggest gains overall in unit sales (up more than 115,000 units) and market share, as it picked up an additional 2.4 percentage points.

“Chrysler continues to gain momentum, thanks in part to the strong performance of the Chrysler 200, which grew its sales by more than 22,000 units,” Anderson said. “The Jeep and Ram brands also continue to exhibit strong sales, as Chrysler now has a more balanced portfolio of passenger cars and light trucks to help hedge against fluctuations in fuel prices.”

In other highlights from Q1 2012:

• The redesigned Volkswagen Passat was the top-selling new vehicle entry, at more than 24,000 units. The Chevrolet Sonic was second, at more than 21,000 units.
• The Ford Focus, Nissan Altima and Toyota Camry were the top three fastest-growing vehicles in unit registration, with increases of more than 29,000, 26,000 and 25,000 respectively.
• Ford had seven of the top 10 models for brand loyalty, led by the Ford Fusion at 61.1 percent.
• GM had the steepest decline in market share, at 1.7 percent.

Get complete findings from the Q1 2012 Experian Automotive industry market trends and loyalty report presented in our webinar on July 25 at 11 a.m. Pacific time/1 p.m. Central time/2 p.m. Eastern time.

View the complete press release.

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Experian Automotive today announced that it will offer National Motor Vehicle Title Information Systems (NMVTIS) Reports to California auto dealers, enabling them to stay in compliance with new government regulations.

“As of July 1, 2012, all California dealers are required to provide a NMVTIS report prior to selling a used vehicle,” said Scott Waldron, president of Experian Automotive. Being an authorized NMVTIS seller reinforces our commitment to our dealer customers, enabling them to get an AutoCheck Vehicle History report and a NMVTIS report through their current AutoCheck access point.

NMVTIS reports provide basic vehicle information in accordance with California state law. When paired with an AutoCheck® vehicle history report, used vehicle dealers and shoppers can feel confident that they are getting the right information to better understand, compare and select the right vehicle.
Used car and truck dealers can access NMVTIS reports through Experian Automotive’s AutoCheck.

To learn more about the NMVTIS reports from Experian Automotive, visit www.Experian.com/NMVTIS. For more information on Experian Automotive’s other products and services, visit www.ExperianAutomotive.com.

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According to its Q1 2012 Vehicles in Operation (VIO) market analysis, Experian Automotive also found that there were more than 245 million vehicles on U.S. roads, and that the age of vehicles increased when compared to Q1 2011, up 1.9 percent to an average age of 11 years.

“An increase of later-model vehicles on the road is a positive sign for the industry because it creates growth opportunities in the important aftermarket sector,” said Jeffrey Anderson, director of consulting and analytics for Experian Automotive. “With lower scrappage rates, historically large sales of older-model vehicles and an increase in incentives for maintaining vehicle ownership, aftermarket part manufacturers and retailers will see an influx of shoppers looking to extend the life of their vehicle.”

Additional data from the report showed Ford as the most prevalent make on the road in Q1, followed by Chevrolet, Toyota and Honda for both Canada and the United States. At the model level, the U.S. analysis showed that the Ford F-150 had the largest volume on the road, followed by the Honda Accord, Toyota Camry and Chevrolet Silverado.

Other findings from the analysis showed that light trucks in the United States continue to grow and maintain a higher percentage of the total VIO than passenger cars.

Light trucks made up 50.8 percent of the total U.S. VIO in Q1 2012, compared with 49.2 percent of passenger cars. Full-sized pickups make up the greatest percentage of VIO, at 14.6 percent overall, with General Motors, Ford, Chrysler and Toyota making up the greatest majority (98.7 percent) of those vehicles.

Additional Q1 2012 findings for the United States include:

• Hybrid/Electric vehicles represent 0.9 percent of VIO in the United States
• 78.5 percent of all light-duty vehicles in the United States are 15 years old or newer
• The top five vehicle segments in the United States make up 50.1 percent of the VIO market

Findings from the Canadian Q1 2012 VIO analysis include:

• More than 22 million vehicles were registered, up from 21.5 million in Q1 2011
• The average age of all light-duty vehicles was 9.6 years
• The largest volume models were Honda Civic, Ford F-150, Toyota Corolla and Dodge Grand Caravan
• Passenger cars made up the greatest majority of VIO at 53.2 percent, and light trucks only encompassed 46.8 percent
• Small-economy cars were favored over full-sized pickups, with small cars encompassing 17 percent of the total VIO
• Hybrid/Electric vehicles represented only 0.4 percent of VIO
• 85.3 percent of all light-duty vehicles are 15 years old or newer
• The top five vehicle segments (small economy car, full-sized pickup, lower midrange car, standard midrange car and minivan) made up 60 percent of the Canadian market

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Experian Healthcare

Experian Healthcare includes the capabilities from the previous acquisitions of SearchAmerica® and Medical Present Value, Inc. (MPV). This year’s ranking for the organization is an improvement from MPVs ranking of 98 on the 2011 list. SearchAmerica was not previously listed.

The HCI 100 is an annual listing of the top 100 health information technology (HIT) companies based on HIT revenue earnings from the most recent fiscal year. In collaboration with Porter Research and ST Advisors LLC, HCI reviews and analyzes company reported sales figures, official financial filings, press releases and information from unrelated healthcare industry consultants to determine the most deserving companies.

“We are extremely proud to be included on this year’s HCI 100 list,” said Dan Johnson, president of Experian Healthcare. “Our jump in the ranking illustrates Experian’s commitment to this sector and underscores our dedication to delivering tools and services that help healthcare providers improve their financial health.”

Check out the complete results of the HCI 100.  For more information on Experian Healthcare’s products and services, visit www.experian.com/healthcare.

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Experian Automotive today announced that average credit scores for consumers buying a vehicle have dropped to near prerecession levels.

According to its quarterly automotive credit analysis, the average credit score for financing a new vehicle dropped six points to 760 and dropped four points to 659 for used vehicles. Comparatively, credit scores in Q1 of 2008 were at an average of 753 for new vehicles and 653 for used.

Lenders also continued to set favorable terms for consumers during Q1 2012. Interest rates were lower year-over-year and loan terms were longer, giving consumers access to potentially lower monthly payments.

For example, the average interest rates dropped to 4.56 percent on new vehicle loans and to 9.02 percent for used. The average loan terms also increased, extending by one month for new and used vehicles to a total of 64 and 59 months, respectively.

“During the first quarter of 2012, car shoppers definitely found more favorable conditions for their vehicle loans,” said Melinda Zabritski, director of automotive credit for Experian. “A reduction in average credit scores, lower interest rates and a lengthening of loan terms are all very good signs for the market and offer great opportunities for consumers looking to make a deal on a new or used vehicle.”

The analysis also showed an increase in the average amount financed. The average amount financed on new vehicles rose by $589 in Q1 2012, reaching a total of $25,995. For used vehicles, the average amount financed increased by $411, bringing the average total to $17,050.

“Our report shows automotive lending is as healthy as it’s been since the market bottomed out in 2008,” continued Zabritski. “With consumers doing a good job of paying back loans on time and the percentage of dollars at risk reaching its lowest point in six years, lenders are able to extend terms and provide lower rates.

This thawing of the credit pipeline has been good for everyone, from consumers to lenders to automotive retailers.”

Some additional highlights from Q1 2012:

• Vehicle loans to nonprime, subprime and deep-subprime customers increased by 11.4 percent

• Auto repossession rates are down by 37.1 percent.

• Thirty-day delinquencies dropped by 7.6 percent; 60-day delinquencies dropped by 12.1 percent.

• Banks and credit unions gained market share. Banks grew by 7.5 percent to 40.21 percent market share, while credit unions grew by 10.5 percent to 16.89 percent market share.

Complete findings from the State of the Automotive Finance Market Q1 2012 credit trends analysis will be presented today in a Webinar at 11 a.m. Pacific/1 p.m. Central/2 p.m. Eastern.  Please join us.

Experian Automotive’s quarterly credit trend analysis features market reporting data and analysis from its AutoCount® Risk Report, which analyzes automotive lending markets based on a uniform measurement of credit quality that segments markets by geography, credit score and vehicle registrations, among other factors.

It also incorporates data from the Experian–Oliver Wyman Market Intelligence Reports, which provide topical, quarterly analysis; peer benchmarking options; and commentary on key issues facing the financial services industry.

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