Experian Automotive: Outstanding Auto Loan Balances Reach Record High of $839.1 Billion

experian_logo30- and 60-day delinquencies show slight uptick

Press Release

Schaumburg, Ill., Aug. 20, 2014 — Experian Automotive today announced that outstanding automotive loan balances reached an all-time high in the second quarter of 2014. According to its latest State of the Automotive Finance Market report, the total dollar amount of automotive loan balances outstanding hit $839.1 billion, up 11.7 percent from the previous year.

Further findings from the report showed that, while still at near historic lows, 60-day loan delinquencies increased by 7 percent to 0.62 percent in Q2 2014 from 0.58 percent the previous year. Additionally, 30-day delinquencies showed a slight increase, going from 2.38 percent to 2.39 percent over the same time period. Moreover, the total balance of loans that are 60-days delinquent has increased by $859 million since Q2 2013, while the balance of 30-day delinquent loans has increased by $2.8 billion from a year earlier.

“The rosy glow of perfect payment performance in the automotive space is beginning to tarnish,” said Melinda Zabritski, senior director of automotive finance for Experian Automotive. “We’re starting to see a slight uptick in the number of consumers struggling to make their automotive payments on time; however, we have to keep in mind that these percentages are still extremely low. We’ll want to keep an eye on how consumers pay their bills in the coming months, as it may dictate the availability of credit in the future.”

Other findings include: • The overall automotive repossession rate saw a significant increase in the second quarter of 2014, jumping more than 70 percent to 0.62 percent from a year earlier • Finance companies were the only lender type to see a year-over-year increase in repossession rates, rising from 1.13 percent in Q2 2013 to 2.75 percent in Q2 2014 • All lender types experienced growth in year-over-year quarterly loan volume, with banks up by $31 billion, credit unions up by $25 billion, finance companies up by $24 billion and captive finance companies up by $9 billion • The average charge-off amount in Q2 2014 was $8,149, up $932 from the previous year

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

 

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