State of the Auto Finance Market

[Pages:27]State of the Automotive Finance Market

Presented by: Melinda Zabritski Q3 2019

1 ? Experian

Session overview

Market Overview

? Outstanding balances ? Total risk distributions ? Delinquency

Originations

? New and Used financing ? Lender and transaction types ? Loan & lease characteristics

2 ? Experian

Experian Public State of the Automotive Finance Market Q3 2019

Overall Automotive Finance Market

A review of all open automotive loans & leases

3 ? Experian

Experian Public State of the Automotive Finance Market Q3 2019

Loan balances reach another record high

Billions Billions

Total open automotive loan balance

$1,240 $1,220

$1,220

$1,200

4.0%

$1,180

$1,174

$1,160

$1,140 $1,120 $1,100

$1,121 6.3%

4.7%

$1,080

$1,060

2017 Q3

2018 Q3

2019 Q3

4 ? Experian

Experian Public State of the Automotive Finance Market Q3 2019

Total open automotive loan balance

$1,400

$1,200 $1,000

$800 $600 $400

$190.3 $305.1 $255.6

$200.0 $342.0 $262.6

$218.7 $358.6 $264.2

$200

$370.2

$0

2017 Q3

Banks Captive

$368.8

2018 Q3 Credit Union

$378.9

2019 Q3 Finance

Source: Experian-Oliver Wyman Market Intelligence Reports

Loan balance distribution stable: percentage of all subprime balances remains under 19%

Loan balance risk distribution

Year-over-year balance change

19.63%

20.03%

20.11%

41.71%

42.17%

42.27%

18.72%

18.50%

18.29%

16.06% 3.87% 2017 Q3

Deep Subprime

15.70% 3.60% 2018 Q3

Subprime Nonprime

15.60% 3.73% 2019 Q3

Prime Super Prime

5 ? Experian

Experian Public State of the Automotive Finance Market Q3 2019

7.79%

3.30%

2.82%

4.26%

4.41%

Deep

Subprime Nonprime

subprime

Prime Super prime

30 day delinquency rates decrease for most lenders

2018 Q3

1.95% 1.92%

2019 Q3

2.26%

% of loans & leases 30 dpd

2.17%

1.22% 1.20%

3.95%

4.18%

2.23% 2.25%

Bank

2018 Q3

1.80% 1.76%

Captive

Credit Union

Finance

2019 Q3

% of loan balances 30 dpd

4.57% 4.69%

2.74% 2.58%

1.04% 1.03%

Total 2.26% 2.25%

Bank

Captive

Credit Union

6 ? Experian

Experian Public State of the Automotive Finance Market Q3 2019

Finance

Total

Source: Experian-Oliver Wyman Market Intelligence Reports

Percentage of loan balances 30 dpd

AK = 1.50% HI = 1.94%

7 ? Experian

Experian Public State of the Automotive Finance Market Q3 2019

60 day delinquency tics up slightly for some lenders

2018 Q3 2019 Q3

% of loans & leases 60 dpd

1.54% 1.66%

0.69% 0.71%

0.57% 0.56%

0.31% 0.29%

0.73% 0.75%

Banks

2018 Q3

Captive

2019 Q3

Credit Union

Finance

% of loan balances 60 dpd

1.76% 1.85%

Total

0.65% 0.66%

0.67% 0.65%

0.24% 0.23%

Bank

Captive

Credit Union

8 ? Experian

Experian Public State of the Automotive Finance Market Q3 2019

0.72% 0.75%

Finance

Total

Source: Experian-Oliver Wyman Market Intelligence Reports

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