Tag: deep subprime
As subprime originations decrease, some think that subprime consumers are being locked out of the automotive finance market, but that’s not the whole story.
Findings from Experian's latest State of the Automotive Finance Market analysis showed market share for nonprime, subprime and deep subprime automotive loans for new vehicles grew by 13.6 percent and new vehicle leasing increased by 7.53 percent year over year in Q3 2012. Thirty-day delinquencies fell slightly from 2.78 percent in Q3 2011 to 2.67 percent in Q3 2012 and 60 day delinquencies fell from 0.71 percent in Q3 2011 to 0.69 percent in Q3 2012.
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 vehicle loans dropped six points, from 767 in Q4 2010 to 761 in Q4 2011 Average credit scores for used vehicle loans dropped nine points, from 679 in Q4 2010 to 670 in Q4 2011 New vehicle loans to nonprime, subprime and deep-subprime customers increased by 13.8 percent from Q4 2010 to Q4 2011 View our recent Webinar on the Q4 2011 state of the automotive market. Source: Experian Automotive's quarterly credit trend analysis. Download the quarterly studies and white papers.
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