SCHAUMBURG, Ill. — Experian Automotive discovered the automotive loan market showed continued improvement as the fourth quarter closed with interest rates for new and used vehicle contracts reaching the lowest levels since 2008.

Experian's quarterly automotive credit analysis also showed average credit scores for new and used vehicle loans dropped, the percentage of loans to customers with nonprime, subprime or deep subprime credit scores increased, and lenders increased their willingness to make loans between six and seven years long.

"The improved automotive lending market is good news for consumers in the market to buy a vehicle," stated Melinda Zabritski, director of automotive lending at Experian Automotive.

"The confluence of low interest rates, longer loan terms and an increase in loans outside of prime provide a great opportunity for more people to find a vehicle that suits their needs," Zabritski continued.

Experian plans to discuss its entire year-over-year comparison report during a Webinar on Tuesday, but the firm share some details this week as a preview, including:

—Average interest rates for new-vehicle loans fell to 4.52 percent in the fourth quarter of 2011, down from 4.84 percent in year earlier period. Average rates for used vehicle loans ticked down to 8.68 percent from 8.71 percent.

—Average credit scores for new-vehicle loans dipped six points from 767 to 761 while average credit scores for used vehicle loans decreased nine points from 679 to 670.

—New-vehicle loans to non-prime, subprime and deep subprime customers increased by 13.8 percent year-over-year during the fourth quarter.

—Loans of 73 to 84 months accounted for 14.1 percent of all new-vehicle loans, up 47.1 percent from the last quarter of 2010. Loans of 73 to 84 months accounted for 9.04 percent of all used vehicle loans, up 41.1 percent from a year earlier.

Beyond these metrics, Experian also mentioned consumers continued to do a better job of repaying loans during the fourth quarter as loan delinquencies fell.

Zabritski noted the 30-day delinquency rate dropped 6.57 percent year-over-year from 2.98 percent to 2.79 percent. She said the 60-day delinquency rate sunk 9.51 percent from 0.79 percent to 0.72 percent.

Experian went on to point out another positive sign for the lending market is that the overall dollar volume of loans at risk dropped to $18.5 billion, a $1.862 billion decline from the close of 2010.

Meanwhile, the firm tabulated the total volume of open loans rose by $23.9 billion in the fourth quarter of 2011 to $658 billion.

"Lenders are clearly on much more solid ground than they were two or three years ago," Zabritski insisted.

"With delinquencies and total dollar volume at risk down, lenders have been able to adopt more aggressive strategies," she surmised. "This tends to benefit everyone, from lenders to automotive retailers to the end consumer. With more lenders aggressively competing for business, it's a great time for consumers to buy or finance a vehicle."

Experian reiterated its quarterly credit trend analysis features market reporting data and analysis coming from its AutoCount Risk Report, which analyzes automotive lending markets based on a uniform measurement of credit quality that segments markets by geography, credit score and vehicle registrations, among other factors.

It also incorporates data from the Experian-Oliver Wyman Market Intelligence Reports, which provide topical, quarterly analysis, peer benchmarking options and commentary on key issues facing the financial services industry.

The firm's Webinar is scheduled for 2 p.m. ET Tuesday. Registration for the session can be completed at www.experian.com/automotive.

Editor's Note: Be sure to watch for Wednesday's editon of SubPrime News Update for Experian's listing of top 20 lenders and more.