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

December 4, 2012

SCHAUMBURG, Ill., Dec. 4, 2012 /PRNewswire/ — 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.

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 Database(SM) 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.ExperianAutomotive.com.

About Experian

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, 2012, was $4.5 billion. Experian employs approximately 17,000 people in 44 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.

Experian and the Experian marks used herein are service marks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein are the property of their respective owners.

Contact:
Roslyn Whitehurst
Experian Public Relations
1 714 830 5578
roslyn.whitehurst@experian.com
Twitter: @RozWhitehurst

SOURCE Experian Automotive


Source: PR Newswire