SCHAUMBURG, Ill. — Experian Automotive reminded lenders and
dealers that despite a marginal rise in delinquencies for the first time since
2009, the auto lending market "is extremely healthy."

Experian found that 60-day delinquencies rose from 0.72
percent in the fourth quarter of 2011 to 0.74 percent in Q4 of last year. The
movement marketed the first time since the fourth quarter of 2009 that either
30- or 60-day loan delinquencies experienced a year-over-year rise.

"Overall, our Q4 analysis shows that the auto lending market
is extremely healthy," said Melinda Zabritski, director of automotive credit
for Experian Automotive.

"Of course, you never want to see an increase in
delinquencies, but when you take a step back and look at the market compared to
where it was three years ago, we still have remarkable stability," Zabritski
continued.

Zabritski pointed out that 30-day delinquencies actually
showed a slight decline, dropping from 2.79 percent in Q4 2011 to 2.72 percent
in Q4 2012.

Experian indicated banks, captives and credit unions all saw
slight drops in 30-day delinquencies. Analysts also mentioned finance
companies, typically lenders for credit-challenged customers such as Credit
Acceptance and Consumer Portfolio Services, saw their 30-day delinquencies rise
from 5.35 percent in Q4 2011 to 5.61 percent in Q4 2012.

Elsewhere, analysts also noted the total balance of 60-day
delinquent loans grew from $3.48 billion in Q4 2011 to $3.93 billion in Q4
2012. However, from the standpoint of growth as a percentage of the total
market, 60-day delinquent loans grew from 0.53 percent in Q4 2011 to 0.55
percent in Q4 2012, according to Experian.

Experian reiterated that overall, the lending market remains
stable compared to Q4 2009.

Analysts said 60-day delinquencies are down in comparison
from 0.94 to 0.74 in Q4 2012, while 30-day delinquencies are down from 3.30 to
2.72 percent in Q4 2012.

In other findings:

—Quarterly repossession rates fell 27.6 percent, going from
0.63 percent in Q4 2011 to 0.46 percent in Q4 2012.

—Quarterly repossession rates for banks, credit unions,
captives and finance companies all fell, with finance companies showing the
sharpest decline (34.7 percent), dropping from 2.47 percent in Q4 2011 to 1.61
percent in Q4 2012.

—Overall charge-off amounts rose from $6,815 in Q4 2011 to
$7,277 in Q4 2012 but still remain below prerecession levels ($8,660 in Q4
2007).


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