Experian Automotive: Toyota, Ford and Chevrolet top makes financed in Q3 2012
Subprime financing, leasing show strong gains
SCHAUMBURG, Ill., Dec. 4, 2012
SCHAUMBURG, Ill., Dec. 4, 2012 /PRNewswire/ --Experian Automotive today
announced that Toyota grabbed top honors in Q3 2012, claiming 14.09 percent of
all new vehicles financed. Ford was second with 13.16 percent, and Chevrolet
was third with 11.10 percent. Findings from its Q3 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 grew by 7.53 percent year over year.
The analysis found that loans financed for new vehicles to customers with
nonprime, subprime or deep-subprime credit ratings increased to 24.84 percent
in Q3 2012 from 21.87 in Q3 2011. For used vehicles, the total subprime
financing market increased 5.47 percent year over year to 54.43 percent in Q3
2012, up from 51.60 percent in Q3 2011.
"With leasing showing a continued upward trend, and lenders increasing their
appetite for risk, consumers were in a good position to obtain a vehicle
during Q3," said Melinda Zabritski, director of automotive credit at Experian
Automotive. "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."
Percentage of new vehicles financed in Q3 2012 by make
Findings from the report showed that lenders still are more risk averse than
they were prior to the Great Recession. In Q3 2007, the average credit score
for a new vehicle loan was 749, compared with 755 in Q3 2012.
The analysis also included information on the average credit scores by make
for new vehicle loans financed in Q3 2012. Consumers who financed a Volvo
comprised the highest average credit scores (818), while those who purchased a
Mitsubishi made up the lowest average credit scores (694).
Top-scoring new loans by make
Land Rover 802
Lowest-scoring new loans by make
In other findings:
oAverage consumer credit scores for loans on new vehicles fell by eight
points, from 763 in Q3 2011 to 755 in Q3 2012. For used vehicles, the
average consumer credit scores fell by eight points, from 676 in Q3 2011
to 668 in Q3 2012.
oCredit unions and finance companies showed strong market share growth of
4.5 percent for overall automotive loans. Credit unions now have 18.22
percent of the overall automotive loan market, while finance companies
grew to 13.29 percent.
oBanks still have the highest market share at 40.98 percent, but they had a
market share decline of 2.9 percent from Q3 2011 to Q3 2012.
oThe average amount financed for a new vehicle loan grew from $25,873 in Q3
2011 to $25,963 in Q3 2012.
oThe average amount financed for a used vehicle grew from $17,359 in Q3
2011 to $17,577 in Q3 2012.
oThirty-day delinquencies fell from 2.78 percent in Q3 2011 to 2.67 percent
in Q3 2012, marking the second consecutive year that third quarter 30-day
delinquencies stayed below the prerecession level of 2.81 percent from Q3
oSixty-day delinquencies fell from 0.71 percent in Q3 2011 to 0.69 percent
in Q3 2012. This marked the second consecutive year that third quarter
60-day delinquencies stayed below the prerecession level of 0.74 percent
from Q3 2007.
oQuarterly repossession rates fell from 0.62 percent in Q3 2011 to 0.40
percent in Q3 2012.
oQuarterly repossession rates for banks, credit unions, captives and
finance companies all fell, with finance companies showing the sharpest
decline, dropping from 2.36 percent in Q3 2011 to 1.18 percent in Q3 2012.
oOverall charge-off amounts rose from $6,820 in Q3 2011 to $7,026 in Q3
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
About Experian Automotive
Experian Automotive provides information services and market intelligence that
enables results-driven professionals to gain the fullest possible
understanding of the market, the vehicles and the people who buy them. Its
North American Vehicle Database^SM houses data on nearly 700 million vehicles
and, when combined with Experian's credit, consumer and business information,
provides an integrated perspective into the automotive marketplace. Experian
Automotive's AutoCheck^® vehicle history reports provide dealers and consumers
with in-depth information, allowing them to confidently understand, compare
and select the right vehicles. For more information on Experian Automotive and
its suite of services, visit our Website at http://www.ExperianAutomotive.com.
Experian^® is the leading global information services company, providing data
and analytical tools to clients around the world. The Group helps businesses
to manage credit risk, prevent fraud, target marketing offers and automate
decision making. Experian also helps individuals to check their credit report
and credit score, and protect against identity theft.
Experian plc is listed on the London Stock Exchange (EXPN) and is a
constituent of the FTSE 100 index. Total revenue for the year ended March 31,
2012, was $4.5 billion. Experian employs approximately 17,000 people in 44
countries and has its corporate headquarters in Dublin, Ireland, with
operational headquarters in Nottingham, UK; California, US; and São Paulo,
For more information, visit http://www.experianplc.com.
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SOURCE Experian Automotive
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