Little change in Q3 delinquency readings
The major delinquency metrics Experian Automotive tracks on a quarterly basis remained nearly flat across the board as analysts generated their third-quarter figures.
According to Experian’s most recent State of the Automotive Finance Market report, 30-day delinquencies associated with the total number of outstanding auto loans decreased by 13 basis points year-over-year in Q3 to settle at 2.53 percent.
Looking at the 30-day delinquency metric but from the total dollar amount of outstanding balances, the reading dipped, too; this time by 5 basis points to 2.35 percent.
While still much higher than the other market segments, Experian pointed out that finance companies saw their 30-day delinquencies improve during the third quarter. Experian classifies finance companies as institutions that originate vehicle installment contracts but do not hold customer deposits. These companies typically are ones that operate in the subprime space, operations such as Consumer Portfolio Services and Exeter Finance.
Experian pinpointed 30-day delinquencies for the total amount of loans at finance companies at 5.30 percent in Q3, down from 6.02 percent a year earlier.
As far as the total amount of loans that were in 30-day delinquency for other market participants, Experian highlighted the following Q3 metrics:
— Commercial banks: 2.01 percent, down 6 basis points year-over-year
— Credit unions: 1.34 percent, down 8 basis points year-over-year
— Captives: 2.53 percent, up 1 basis point year-over-year
Meanwhile, when looking at 60-day delinquencies and accounts about to go out for repossession, Experian put the total overall reading at 0.725 percent in the third quarter.
Again, finance companies had the highest reading in this delinquency category, too, as contracts 60 days past due for these providers stood at 1.907 percent in Q3. But the latest level did mark a year-over-year improvement from 2.068 percent.
Of note for forwarding companies and repossession agencies, the top five states with the highest levels of 60-day delinquencies are familiar. Experian broke it down this way:
— Mississippi: 1.15 percent
— Louisiana: 1.12 percent
— Alabama: 0.93 percent
— New Mexico: 0.93 percent
— South Carolina: 0.89 percent