Open automotive loans top $1 trillion while lease balances skyrocket

"Automotive financing certainly has started off the year with a bang, seeing steady growth in balances and loan volumes throughout the first quarter," said Melinda Zabritski, senior director of automotive finance for Experian. "With more and more consumers relying on financing, it is important for lenders to keep a close eye on delinquency trends to ensure the market remains healthy. Likewise, consumers need to continue making their monthly payments on time to keep affordable financing options open and available."

Findings from the report also show that while there were increases in both 30- and 60-day delinquency rates, the overall percentage of total delinquent loans remains relatively low when compared to pre-recession levels. In Q1 2016, the percentage of loans and leases considered 30-days delinquent was 2.1 percent, up from 2.02 percent in Q1 2015. Additionally, the percentage of loans and leases considered 60-days delinquent grew from 0.57 percent to 0.61 percent over the same time period.

Some additional insights from the Q1 2016 report:

• The volume of vehicle loans and leases held by nonprime and subprime consumers increased by 9.5 percent and 10.9 percent, respectively
• Prime consumer loans and leases increased by 8.9 percent
• Finance companies and credit unions saw the largest growth in loan and lease market share, growing 25.6 percent and 15.9 percent, respectively
• Banks continued to hold the top position in automotive loan and lease volume, growing 7.9 percent over the previous year to reach $349 billion in market share

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.experian.com/automotive.

About Experian

We are the leading global information services company, providing data and analytical tools to our clients around the world. We help businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making. We also help people to check their credit report and credit score and protect against identity theft. In 2015, we were named one of the "World's Most Innovative Companies" by Forbes magazine.

We employ approximately 17,000 people in 37 countries and our corporate headquarters are in Dublin, Ireland, with operational headquarters in Nottingham, UK; California, US; and São Paulo, Brazil.

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, 2016, was US$4.6 billion.

To find out more about our company, please visit http://www.experianplc.com or watch our documentary, "Inside Experian."

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

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SOURCE Experian

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