Experian Automotive: Sixty-day auto loan delinquencies rise for first time
Auto lending still healthy as delinquencies remain below prerecession levels
SCHAUMBURG, Ill., Feb. 21, 2013
SCHAUMBURG, Ill., Feb. 21, 2013 /PRNewswire/ -- Experian Automotive today
released its industry-wide analysis of automotive credit trends for Q4 2012
and found that 60-day delinquencies rose from 0.72 percent in Q4 2011 to 0.74
percent in Q4 2012. It was the first time since Q4 2009 that either 30- or
60-day loan delinquencies experienced a year-over-year rise.
"Overall, our Q4 analysis shows that the auto lending market is extremely
healthy," said Melinda Zabritski, director of automotive credit for Experian
Automotive. "Of course, you never want to see an increase in delinquencies,
but when you take a step back and look at the market compared to where it was
three years ago, we still have remarkable stability."
Thirty-day delinquencies showed a slight decline, dropping from 2.79 percent
in Q4 2011 to 2.72 percent in Q4 2012. Banks, captives and credit unions all
saw slight drops in 30-day delinquencies. Finance companies, typically lenders
for credit-challenged customers, saw their 30-day delinquencies rise from 5.35
percent in Q4 2011 to 5.61 percent in Q4 2012.
The total balance of 60-day delinquent loans grew from $3.48 billion in Q4
2011 to $3.93 billion in Q4 2012. However, from the standpoint of growth as a
percentage of the total market, 60-day delinquent loans grew from 0.53 percent
in Q4 2011 to 0.55 percent in Q4 2012.
Overall, the lending market remains stable compared to Q4 2009. Sixty-day
delinquencies are down in comparison from 0.94 to 0.74 in Q4 2012, while
30-day delinquencies are down from 3.30 to 2.72 percent in Q4 2012.
In other findings
oQuarterly repossession rates fell 27.6 percent, going from 0.63 percent in
Q4 2011 to 0.46 percent in Q4 2012.
oQuarterly repossession rates for banks, credit unions, captives and
finance companies all fell, with finance companies showing the sharpest
decline (34.7 percent), dropping from 2.47 percent in Q4 2011 to 1.61
percent in Q4 2012.
oOverall charge-off amounts rose from $6,815 in Q4 2011 to $7,277 in Q4
2012 but still remain below prerecession levels ($8,660 in Q4
2007).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.
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 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 Sao Paulo,
For more information, visit www.experianplc.com.
Experian and the Experian marks used herein are service marks or registered
trademarks of Experian Information Solutions, Inc. Other product and company
names mentioned herein are the property of their respective owners.
Experian Public Relations
1 714 830 5578
SOURCE Experian Automotive
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