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Old 08-31-2011, 11:29 AM   #1
XDCX
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Default State of the Automotive Finance Market - Second Quarter 2011

State of the Automotive Finance Market - Second Quarter 2011




Experian Services Corporation just released their Second Quarter, 2011 State of Automotive Financing presentation and I wanted to highlight some of the recent trends. For the most part the trends are very favorable and should be shared with your sales staff so they can feel more confident in the dealership's ability to get car loans funded.

Here's a recap of the major findings:
Current auto loans with a 30 Day Delinquency are falling with all of the lending institutions. (Banks, captives, credit unions, finance companies, etc.) Currently 2.59% of all auto loans are 30 Days Delinquent - last year it was 2.89%

The same trend follows for auto loans with a 60 Day Delinquency. Currently 0.71% of all auto loans are 60 Days Delinquent - last year it was 0.60%
The same trend follows for the repossession rate. Currently 0.62% of all auto loans result in repossession - last year it was 0.59%

Perhaps the most interesting finding, the "charge-off" for each repossession has dropped dramatically over the past year. The current "charge-off" for each repossession is $7,786 - last year it was $11,161 - that's a drop of $3,375. (I'm guessing that the strong used car market has helped the lenders cut their losses when they sell vehicles at auction.)

Average credit scores for loans issued in the Second Quarter have dropped - suggesting that lenders are buying deeper. In fact, the average credit score for new vehicle loans issued in the Second Quarter is the lowest it's been since the Third Quarter of 2008.

Average Payments: New = $450 Used = $347

Average Term: New = 63 Months Used = 59 Months

Average Finance Rate: New = 4.77% Used = 8.80%
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Old 08-31-2011, 11:51 AM   #2
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Default Here's a copy of the Experian Presentation

For those who may be wondering where all of this data comes from, I've included Experian's State of the Automotive Finance Market - Second Quarter 2011 as an attachment to this post.

The presentation is 29 pages long so it's a large file but it's an interesting read with a lot of great information.

Note: This attachment is only available to DealershipForum members. If you're not a member but still want a copy of this presentation just send me a message using the "Contact Us" link and I'll send you an email message with the attachment.
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File Type: pdf 2011_2Q_State of Automotive Financing 8-31-2011.pdf (2.02 MB, 12 views)
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Old 08-31-2011, 03:48 PM   #3
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Question Nothing about leasing.....

While I thought the report from Experian provided a wealth of knowledge I'm somewhat surprised they didn't discuss leasing.

I'd be curious to learn the percentage of leasing business each captive lender did. I alway heard that BMW was heavy into leasing, it would be interesting to see the numbers.
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