SCHAUMBURG, Ill. — As the amount of nonprime, subprime and
deep subprime auto loans moved higher year-over-year, Experian Automotive
discovered that quarterly vehicle repossessions dropped by 14.8 percent to
achieve the lowest rate since analysts began tracking the data seven years ago.

According to its latest State of the Automotive Finance
Market report, Experian found that 0.36 percent of all vehicle loans ended in a
repossession during the second quarter, down from 0.43 percent in Q2 of last
year. This change also represented a 10.4-percent decrease from the previous
low of 0.41 percent in Q2 of 2006.

Additional findings from the report showed that 30-day
delinquencies decreased by 5.6 percent year-over-year, going from 2.52 percent
in Q2 2012 to 2.38 percent in Q2 2013.

While slightly up from Q1 2013 (by two basis points), this
decrease brings 30-day delinquencies to its lowest level for the second quarter
since 2006.

Analysts also noted 60-day delinquencies remain relatively
flat year-over-year but still are extremely low at 0.58 percent. (Q2 2006
showed 60-day delinquencies slightly lower at 0.53 percent, but 2013 is the
next-lowest Q2 point.)

"Repossession and delinquency rates seen this quarter were
lower than expected," said Melinda Zabritski, Experian's senior director of
automotive credit.

"The seasonality of the market usually has the first quarter
showing the lowest 30-day delinquency rates, but even with the total automotive
loan portfolio growing, consumers in the second quarter have done an
exceptional job of meeting their financial obligations to keep the market
strong," Zabritski continued.

The report also showed that the total balance of outstanding
automotive loans grew from more than $682 billion in Q2 2012 to nearly $751
billion in Q2 2013.

Banks increased their total dollar volume by $24 billion,
followed by credit unions ($18 billion), finance companies ($16 billion) and
captive finance companies ($11 billion).

In other findings:

—The balance of loans that are 30 days delinquent rose by
$761 million in Q2 2013. However, on a percentage basis, delinquencies
represent just 1.96 percent of the total loan balance, down from 2.05 percent
in Q2 2012.

—60-day delinquencies account for just 0.42 percent of the
total loan portfolio dollar value. This delinquency rate is flat year-over-year.

—Nonprime, subprime and deep subprime loans account for 35.2
percent of all open vehicle loans in Q2 2013, up from 34.9 percent in Q2 2012.

—Average charge-off amounts for defaulted loans were up by
$450, from $6,768 in Q2 2012 to $7,218 in Q2 2013.

Experian quarterly State of the Automotive Finance Market
report features market data and analysis from its AutoCount Risk Report, as
well as information from IntelliView that is sourced from the Experian-Oliver
Wyman Market Intelligence Reports.

Zabritski is among the many industry experts who will be on
hand during the parts of Used Car Week that focus on these topics: the SubPrime
Forum and the Re3 Conference.

The SubPrime Forum, which will be presented by SubPrime Auto
Finance News and SubPrimeNews.com, in affiliation with the National Automotive
Finance Association, is set for Nov. 12 and 13 at the Manchester Grand Hyatt in
San Diego.

The Re3 Conference takes place on Nov. 13 and is scheduled
to include its own exclusive midday sessions highlighting some of the top
issues in the repossession, recovery and remarketing industries.

More details about these events as well as the CPO | The
Pre-Owned Conference and the National Remarketing Conference can be found at
www.usedcarweek.biz.

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