SCHAUMBURG, Ill. — Lenders awarding new-vehicle contracts to
customers in the nonprime, subprime and deep-subprime risk tiers grew by double
digits year-over-year during the second quarter.

Experian Automotive determined 25.41 percent of all new-vehicle
loans went to customers in the nonprime, subprime and deep subprime risk tiers
as loans to credit-challenged customers climbed 14 percent compared to the
second quarter of last year.

In addition, Experian found new-vehicle loans to
credit-challenged customers now are higher than they were in the second quarter
of 2007 (24.96 percent) and the second quarter of 2008 (24.49 percent), just
prior to the financial market crisis.

However, the Q2 analysis also revealed that lenders are
still taking a cautious approach, keeping loan-to-value (LTV) ratios (the
amount of money paid over the life of a loan versus the purchase price of the
vehicle) lower than they were a year ago.

For new vehicles, the average LTV ratio was 109.55 percent
in the second quarter, compared to 115.65 percent in the same timeframe a year
earlier.

"Despite the rise in subprime loans overall, there is still
a strong sense of managing risk," explained Melinda Zabritski, director of
automotive credit for Experian Automotive.

"Because the overall lending environment has improved, lenders
are making loans available to a wider range of customers," Zabritski continued.
"This is good for manufacturers and dealers as it allows them to sell more
vehicles.

"However, the lower loan-to-value ratios show that lenders
are not willing to throw caution to the winds," she added.

Additionally, the Q2 report showed that the average customer
credit score for new-vehicle loans dropped nine points year-over-year from 762 to
753.

Meanwhile for used vehicle loans, the average customer
credit score also dropped nine points from 671 to 662.

In other findings:

—The average amount financed for a new vehicle increased
$474 from $25,240 to $25,714.

—The average amount financed for a used vehicle jumped $370
from $17,063 to $17,433.

—The average monthly payment for both new and used vehicles
was relatively flat with new vehicles rising by $2 from $450 to $452. For used
vehicles, monthly payments jumped $4 from $347 to $351.

Complete findings from the State of the Automotive Finance
Market Q2 2012 credit trends analysis will be presented during a Webinar at 2
p.m. EST on Thursday.

To register for the event, visit www.ExperianAutomotive.com.

Experian Automotive's quarterly credit trend analysis
features market reporting data and analysis 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.

The report 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.