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 in Q2 2010.
The largest percentage increase in new car loans was in the category with the highest risk: deep subprime, which jumped 44.1 percent, moving from 1.48 percent of all new vehicle loans in Q2 2010 to 2.13 percent in Q2 2011.
For more information on Experian Automotive’s AutoCount® Risk Report, visit www.autocount.com
Source: Automotive quarterly credit trends
