State of the Auto Finance Market - Experian

State of the Automotive Finance Market

Presented by: Melinda Zabritski Q4 2018

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 Q4 2018

Overall Automotive Finance Market

A review of all open automotive loans & leases

3 ? Experian

Experian Public State of the Automotive Finance Market Q4 2018

Billions Billions

Loan balances reach another record high with growth across all lender types; Credit Unions maintain double-digit growth

Total open automotive loan balance

$1,200 $1,180

$1,178

$1,160 $1,140 $1,120 $1,100 $1,080

$1,072

$1,129 5.3%

4.4%

$1,060 $1,040

8.6%

$1,020

$1,000

2016 Q4

2017 Q4

2018 Q4

Total open automotive loan balance

$1,400

$1,200 $1,000

$800 $600 $400

$179.0 $276.8 $252.0

$189.3 $313.0 $258.5

$201.7 $346.3 $262.1

$200

$364.3

$0

2016 Q4

Banks Captive

$368.3

2017 Q4 Credit Union

$368.2

2018 Q4 Finance

4 ? Experian

Experian Public State of the Automotive Finance Market Q4 2018

Source: Experian-Oliver Wyman Market Intelligence Reports

Percentage of subprime remains below 20% of loan balances with increased balances across all risk segments

Loan balance risk distribution

Year-over-year balance change

18.72% 41.64%

19.17% 42.00%

19.62% 42.19%

6.04%

6.81% 4.84%

19.25%

18.96%

18.50%

16.41% 3.98% 2016 Q4

16.11% 3.77% 2017 Q4

15.86% 3.83% 2018 Q4

Deep Subprime Subprime Nonprime Prime Super Prime

2.75%

1.86%

Deep

Subprime Nonprime

subprime

Prime Super prime

5 ? Experian

Experian Public State of the Automotive Finance Market Q4 2018

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download