Tag: Automotive Finance Market analysis
As new vehicle prices continue to rise, more consumers are turning to leasing as a cost-effective auto financing option. Findings from the most recent State of the Automotive Finance Market report show that the average lease payment for Q4 2015 was $412 (versus the average loan payment of $493). Not surprisingly, due to the fact that most consumers tend to finance vehicles based on monthly prices, leasing reached a record high, accounting for 33.6% of all new financing during the quarter. Lenders can design more effective strategies by using analytics to gain insight into the latest trends and to target the right customers for automotive leases and loans. >> Video: Auto Acquisition Strategies
According to Experian’s latest State of the Automotive Finance Market report, auto loan balances reached an all-time high of $987 billion in Q4 2015 — an increase of 11.5% over Q4 2014.
According to the latest Experian State of the Automotive Finance Market report, leases accounted for nearly 27% of all new vehicle transactions in Q3 2015, up from 24.7% the previous year and the highest percentage on record.
While auto delinquencies declined slightly year over year (3.01% for accounts 30 days past due or greater in Q2 2015 versus 3.03% a year earlier), it is interesting to note the variance in delinquency by lender channel.
According to Experian’s latest State of the Automotive Finance Market report, auto loan balances reached an all-time high of $905 billion in the first quarter of 2015.
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.
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.
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.
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 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.
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