PDF State of the Automotive Finance Market - Experian

[Pages:27]State of the Automotive Finance Market

A look at loans and leases in Q3 2017

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

Experian Public State of the Automotive Finance Market Q3 2017

Overall Automotive Finance Market

A review of all open automotive loans & leases

3 ? Experian

Experian Public State of the Automotive Finance Market Q3 2017

Billions Billions

Loan balances reach another record high-yet experience slowing growth; Credit Unions see highest growth

Total open automotive loan balance

1,150

1,121

1,100 1,050

1,055

1,000 950

968

900

850

2015 Q3

2016 Q3

2017 Q3

Total open automotive loan balance

$1,200

$1,000 $800 $600 $400

$161 $234 $242

$178 $269 $250

$190 $305 $256

$200

$331

$358

$370

$0

2015 Q3

2016 Q3

2017 Q3

All Banks Captive Auto Credit Union Finance

4 ? Experian

Experian Public State of the Automotive Finance Market Q3 2017

Source: Experian-Oliver Wyman Market Intelligence Reports

Majority of loan balances remain prime or higher with high risk segments creeping toward 20%

Loan balance risk distribution

Year-over-year balance change

19.39% 41.98%

19.26% 41.84%

19.63% 41.71%

9.86% 6.43%

8.32% 5.99%

19.26%

19.11%

18.72%

4.12%

15.92% 3.44% 2015 Q3

Deep Subprime

16.04% 3.75% 2016 Q3

Subprime Nonprime

16.06% 3.87% 2017 Q3

Prime Super Prime

Deep Subprime Nonprime subprime

Prime Super prime

5 ? Experian

Experian Public State of the Automotive Finance Market Q3 2017

30 day delinquency rates are improving

5.0%

2016 Q3 2017 Q3

% of loans & leases 30 dpd

4.58% 4.39%

4.0%

3.0%

1.97% 1.99%

2.0%

1.0%

2.22% 2.37%

1.35% 1.34%

0.0%

Bank

Captive

Credit Union

Finance

6.0%

2016 Q3 2017 Q3

% of loan balances 30 dpd

5.10% 5.03%

4.0%

2.0%

1.76% 1.84%

2.67% 2.85%

1.21% 1.19%

0.0%

Bank

Captive

Credit Union

Finance

2.38% 2.39% Total

2.40% 2.43% Total

6 ? Experian

Experian Public State of the Automotive Finance Market Q3 2017

Source: Experian-Oliver Wyman Market Intelligence Reports

Percentage of loan balances 30 dpd

AK = 1.78% HI = 1.79%

7 ? Experian

Experian Public State of the Automotive Finance Market Q3 2017

60 day delinquency rates continue to deteriorate

2.0%

2016 Q3 2017 Q3

1.5%

% of loans & leases 60 dpd

1.78% 1.71%

1.0%

0.63% 0.66%

0.5%

0.50% 0.60%

0.34% 0.33%

0.0%

Bank

Captive

Credit Union

Finance

% of loan balances 60 dpd

2.5%

2016 Q3 2017 Q3

2.0%

1.93% 1.95%

1.5%

1.0%

0.55% 0.61%

0.5%

0.60% 0.69%

0.28% 0.27%

0.0%

Bank

Captive

Credit Union

Finance

0.74% 0.76% Total

0.72% 0.76% Total

8 ? Experian

Experian Public State of the Automotive Finance Market Q3 2017

Source: Experian-Oliver Wyman Market Intelligence Reports

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