Experian Automotive: 30- and 60-day delinquency rates increase
Southern states see highest delinquency rates, while Midwest and Northwest trend lower
SCHAUMBURG, Ill., Nov. 19, 2014 /PRNewswire/ -- Experian Automotive today announced that 30- and 60-day automotive-loan delinquencies were up in the third quarter of 2014. According to its latest State of the Automotive Finance Market report, 30-day delinquencies grew 3.7 percent from the previous year. Similarly, 60-day delinquencies jumped 8.6 percent during the same time period.
"While we have observed a rise in delinquencies over the past few quarters, it was to be expected due to the growth in subprime loans. We have to keep in mind that a majority of the market is still in the prime risk category," said Melinda Zabritski, Experian's senior director of automotive credit. "As long as consumers continue to do a good job of making their auto-loan payments on time and lenders keep a close eye on how rates fluctuate year over year, the industry should remain relatively stable. Understanding the shifts in payment behavior and the industry's risk tolerance are important for the market because these insights can trigger actions that affect vehicle prices, loan terms or interest rates."
Further findings from the report showed that, at a state level, states in the South accounted for four of the top five highest delinquency rates in both the 30- and 60-day category. On the flip side, the states with the lowest delinquency rates in both categories primarily resided in the Midwest and Northwest regions.
| 30-day delinquency rates by state |
60-day delinquency rates by state |
||||||
| Highest delinquency rate |
Lowest delinquency rate |
Highest delinquency rate |
Lowest delinquency rate |
||||
| Mississippi |
4.49% |
North Dakota |
1.18% |
Washington D.C. |
1.42% |
North Dakota |
0.27% |
| Washington D.C. |
4.02% |
South Dakota |
1.43% |
Mississippi |
1.36% |
Alaska |
0.36% |
| Louisiana |
3.71% |
Minnesota |
1.49% |
Louisiana |
1.16% |
Oregon |
0.37% |
| South Carolina |
3.66% |
Oregon |
1.50% |
Alabama |
1.05% |
South Dakota |
0.42% |
| Alabama |
3.49% |
Alaska |
1.54% |
New Mexico |
1.01% |
Idaho |
0.42% |
Other findings include:
- Total balances for all open automotive loans grew to $870 billion, up from $784 billion a year ago.
- Finance companies saw the highest percentage increase in total dollar volume, jumping 19.6 percent to $134 billion.
- Super-prime loans accounted for 20.6 percent of total loans in Q3 2014, up from 20.26 percent the prior year. At the opposite end of the spectrum, deep subprime grew from 3.57 percent to 3.84 percent.
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.
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, 2014, was US$4.8 billion. Experian employs approximately 16,000 people in 39 countries and has its corporate headquarters in Dublin, Ireland, with operational headquarters in Nottingham, UK; California, US; and Sao Paulo, Brazil.
For more information, visit http://www.experianplc.com.
Experian and the Experian marks used herein are trademarks 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
[email protected]
Twitter: @RozWhitehurst
SOURCE Experian Automotive
Related Links
http://www.experianautomotive.com
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