Experian Automotive: Toyota, Ford and Chevrolet top makes financed in Q3 2012


experian

Subprime financing, leasing show strong gains

SCHAUMBURG, IL--Dec. 4, 2012: 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

Make

Percentage

Toyota

14.09%

Ford

13.16%

Chevrolet

11.10%

Honda

10.20%

Nissan

8.28%

Hyundai

6.06%

Kia

5.32%

Jeep

4.20%

Dodge

3.21%

Volkswagen

2.85%

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

Make

Score

Volvo

818

Lexus

816

Acura

813

Audi

810

Infiniti

810

Jaguar

810

Porsche

810

Land Rover

802

Mercedes

802

Lincoln

801

Lowest-scoring new loans by make

Make

Score

Mitsubishi

694

Suzuki

704

Dodge

718

Kia

721

Scion

723

Nissan

726

Chevrolet

737

Chrysler

737

Ram

737

Fiat

741

In other findings:

  • Average 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.
  • Credit 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.
  • Banks 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.
  • The average amount financed for a new vehicle loan grew from $25,873 in Q3 2011 to $25,963 in Q3 2012.
  • The average amount financed for a used vehicle grew from $17,359 in Q3 2011 to $17,577 in Q3 2012.
  • Thirty-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 2007.
  • Sixty-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.
  • Quarterly repossession rates fell from 0.62 percent in Q3 2011 to 0.40 percent in Q3 2012.
  • Quarterly 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.
  • Overall charge-off amounts rose from $6,820 in Q3 2011 to $7,026 in Q3 2012.

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.

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