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The ubiquity of mobile devices provides financial services marketers with an effective way to distribute targeted, customized messages that appeal to a single shopper — a marketing segment of one.
Auto loan originations reached $153 billion in Q2 2014, which was a 16 percent increase over the same quarter last year. While the largest contribution came from captive auto lenders at $47 billion (a 14 percent increase), credit unions experienced the largest year-over-year increase of 35 percent, with originations reaching $37 billion in the latest quarter. As auto loan originations continue to grow, lenders can stay ahead of the competition by using advanced analytics to target the right customers and increase profitability. Learn how your automotive portfolio compares through the peer-benchmarking capabilities of IntelliViewSM, and view sample reports by industry. Source: Access the latest credit trends with Experian's IntelliView.
Consumer debt for every major consumer lending category has decreased over the past few years, except for student loans.
I have heard from a few creditors that when it comes to allocating accounts to collection agencies for recoveries creating a rule based strategy isn’t always in the cards. When clients use multiple collection agencies their ability to allocate accounts to the different agencies based on rule based strategies isn’t always available. Some have a single setting on a billing or assignment system that indicates the account is to be assigned to Collection Agency X versus Collection Agency Y, and there is no easy method to make that assignment based on a true strategy. Worse yet, it is often difficult to impossible to reassign that account from Collection Agency X to Collection Agency Y if the account status or risk level changes. This means that their use of multiple collection agencies is not as “optimized” as it could be if a scripting or rule based tool was available to the business user. Optimizing assignments means that the account is initially as well as subsequently assigned to the right agency at the right time based on its type, risk, history, balance, status and other circumstances to maximum recoveries. This approach can make a significant difference in the recovery of bad debt. Furthermore, test results or allocations should be displayed after a script has been entered. This usually provides a “what if” on collection agency assignments displaying the number or dollar value assigned if the rule was implemented. That way you know if the script is correct (ballpark allocation seems reasonable), and if the allocation to any particular agency is within policy limits by dollar amount or number of accounts. Do you believe that you are optimizating your allocations to the agencies you use? Do you have the tools you need to effectively assign each account to the right agency? Experian can help with its agency allocation and management solutions through Tallyman Agency Allocation. Learn more about our Tallyman Agency Allocation software.
While automotive loan originations grew 15 percent year over year in Q1 2014, a recent Experian Automotive study found that more consumers are continuing to drive older-model vehicles.
With the cost of new vehicles continuing to increase, consumers are opting for longer loan terms.
Although 60-day automotive loan delinquencies fell 1.7 percent at a national level when comparing Q1 2014 to Q1 2013, twenty-two states actually experienced a delinquency increase.
A recent survey focusing on the credit behavior of Millennials (age group 18 to 30) shows that 90 percent are familiar with cosigning and two-thirds have used a cosigner in the past.
Auto financing became easier to obtain in Q4 2013 and the market share for new vehicle loans in the nonprime, subprime and deep-subprime credit tiers increased slightly to 34.1 percent of all new loans, up from 32.8 percent in Q4 2012.
The most recent Experian State of the Automotive Finance Market report shows more consumers are leasing vehicles. Leases accounted for 28.4 percent of all new vehicles financed in Q4 2013 - the highest level on record since 2006.
Findings from the most recent Experian State of the Automotive Finance Market report show outstanding automotive loan balances increased 11 percent from Q4 2012, reaching $798.5 billion in Q4 2013 — the highest level since 2007.
According to Experian’s latest State of the Automotive Finance Market report, interest rates for new auto loans dropped to 4.27 percent — the lowest rate on record. In addition to increasing new vehicle sales, the historically low interest rates helped consumers finance a larger balance, with the average new vehicle loan coming in at $26,719 for Q3 2013 — the highest average amount financed since 2008. Sign up to access our quarterly analysis of the latest automotive finance trends Source: Experian Automotive: Interest rates for auto loans hit all-time low, while average amount financed reaches highest point since 2008
The latest quarterly credit trends analysis by Experian shows that mortgage originations increased by 10 percent over one year ago. More importantly, the data shows a 29 percent increase in home purchases from the prior quarter and a decrease in refinance activity. Additionally, home-equity lines of credit (HELOCs) increased significantly (30 percent over last year), providing further evidence of an improving real-estate market. Source: Mortgage originations increase by 10 percent from a year ago
According to Experian’s latest State of the Automotive Finance Market report, a record 84.5% of consumers who acquired a new vehicle in Q2 2013 used either a loan or a lease to fund the purchase - up from 82.5% in Q2 2012. Leases accounted for an all-time high of 27.6% of new vehicles financed during the second quarter, up from 24.4% in Q2 2012.
According to the Q2 2013 Experian Automotive State of the Automotive Finance Market report, vehicle repossessions reached their lowest rate in seven years, with only 0.36 percent of all vehicle loans reaching repossession. This change is a drop of 14.8 percent over the previous quarter and a 10.4 percent decrease from the previous low of 0.41 percent in Q2 2006.