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Experian Automotive: Sixty-day auto loan delinquencies rise for first time since 2009

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Auto lending still healthy as delinquencies remain below prerecession levels

SCHAUMBURG, IL--Feb. 21, 2013: 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

  • Quarterly repossession rates fell 27.6 percent, going from 0.63 percent in Q4 2011 to 0.46 percent in Q4 2012.
  • Quarterly 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.
  • Overall 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.