State of the Automotive Finance Market - Check Your Credit ...

[Pages:28]State of the Automotive Finance Market

A look at loans and leases in Q4 2016

Presented by: Melinda Zabritski | Sr. Director, Financial Solutions

w w w. e x p e r i a n . c o m / a u t o m o t i v e

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Session overview

Market Overview

? Outstanding balances ? Total risk distributions ? Delinquency

Originations

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

2 ? Experian

Overall Automotive Finance Market

A review of all open automotive loans & leases

3 ? Experian

Loan balances break record highs while Credit Unions experience largest YOY growth (loans regardless of origination period)

Billions

Total open automotive loan balance

$1,200 $1,000

$886

$987

$1,072

$800

$600

$400

$200

$0

2014 Q4

2015 Q4

2016 Q4

Total open automotive loan balance

$1,200

$1,000 $800 $600 $400

$135 $208 $230

$166 $241 $244

$179 $277 $252

$200

$313

$337

$364

$0

2014 Q4

2015 Q4

2016 Q4

All Banks Captive Auto Credit Union Finance

Source: Experian-Oliver Wyman Market Intelligence Reports 4 ? Experian

Source: Experian-Oliver Wyman Market Intelligence Reports

Majority of loan balances remain prime or higher with modest growth in high risk segments

Loan balance risk distribution

35.16%

35.30%

35.30%

Year-over-year balance change

14.57%

27.75%

27.23%

26.93%

18.06%

18.03%

17.90%

15.58% 3.45% 2014 Q4

Deep Subprime

15.77% 3.66% 2015 Q4

Subprime Nonprime

15.96% 3.91% 2016 Q4

Prime Super Prime

Source: Experian-Oliver Wyman Market Intelligence Reports 5 ? Experian

8.62%

6.57%

6.15%

7.34%

Deep

Subprime Nonprime

subprime

Prime Super prime

30 day delinquency is flat with slight increase in at-risk dollars (loans and leases regardless of origination period)

Source: Experian-Oliver Wyman Market Intelligence Reports 6 ? Experian

Source: Experian-Oliver Wyman Market Intelligence Reports

30-day delinquency balances by state

(loans regardless of origination period)

1.42%

HI = 1.99%

Source: Experian-Oliver Wyman Market Intelligence Reports 7 ? Experian

Source: Experian-Oliver Wyman Market Intelligence Reports

60 day delinquency growth across all lender types

(loans and leases regardless of origination period)

Source: Experian-Oliver Wyman Market Intelligence Reports 8 ? Experian

Source: Experian-Oliver Wyman Market Intelligence Reports

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