Experian Automotive today announced that a record 84.5 percent of consumers who acquired a new vehicle in the second quarter obtained either a loan or a lease to fund the purchase. According to the latest State of the Automotive Finance Market report, new vehicle financing is at the highest level since tracking began in 2006. This metric is up from 82.5 percent in Q2 2012 and from 79.7 percent prior to the recession in Q2 2008.
“Loans have become more accessible in recent years, and we’ve seen a steady growth in the percentage of consumers financing their vehicles,” said Melinda Zabritski, senior director of automotive credit for Experian Automotive. “Obviously, this is good news for the auto industry, but it’s also good for consumers because this, combined with the reduction we have seen in delinquencies, shows that they are feeling more confident in their ability to take on more debt and pay it off in a timely manner.”
Findings from the report showed that of all new vehicles financed, leases accounted for an all-time high of 27.64 percent during the second quarter, up from 24.4 percent in Q2 2012. Additionally, the report highlighted the differences in financing attributes, such as average monthly payment, credit score and financing term. For example, the average monthly lease payment was $408, compared with $457 on a new vehicle loan.
Subprime loans continue to gain market share
Nonprime, subprime and deep-subprime new vehicle loans increased to 27.45 percent market share in Q2 2013, up from 25.41 percent in Q2 2012. For used vehicles, nonprime, subprime and deep-subprime loans accounted for 57.31 percent market share in Q2 2013, up from 56.46 percent in Q2 2012.
In other Q2 2013 findings:
- The average amount financed was $26,526 for a new vehicle and $17,913 for used
- The average interest rate was 4.46 percent on a new vehicle loan and 8.56 percent for used
- The average loan term was 65 months for a new vehicle and 61 months for used
- The average monthly payment was $457 on a new vehicle and $351 for used
About Experian Automotive
Experian Automotive provides information services and market intelligence that enables results-driven professionals to gain the fullest possible understanding of the market, the vehicles and the people who buy them. Its North American Vehicle DatabaseSM houses data on nearly 700 million vehicles and, when combined with Experian’s credit, consumer and business information, provides an integrated perspective into the automotive marketplace. Experian Automotive’s AutoCheck® vehicle history reports provide dealers and consumers with in-depth information, allowing them to confidently understand, compare and select the right vehicles. For more information on Experian Automotive and its suite of services, visit our Website at http://www.experian.com/Automotive.
Experian® is the leading global information services company, providing data and analytical tools to clients around the world. The Group helps businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making. Experian also helps individuals to check their credit report and credit score, and protect against identity theft.
Experian plc is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. Total revenue for the year ended March 31, 2013, was US$4.7 billion. Experian employs approximately 17,000 people in 40 countries and has its corporate headquarters in Dublin, Ireland, with operational headquarters in Nottingham, UK; California, US; and São Paulo, Brazil.
For more information, visit http://www.experianplc.com