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LAS VEGAS — Experian Automotive's Melinda
Zabritski offered a special presentation today breaking out dealer
demographics at this year's annual National Alliance of Buy-Here, Pay-Here
Dealers conference in Las Vegas.

So what did Experian's director of automotive credit learn?

The BHPH market consists of just under 24,000 dealers,
representing more than $1.8 million in loans and $24 billion in originations. Ken
Shilson, NABD founder, told SubPrime Auto Finance News that this number is
probably a bit low, but he said it's a first real look at the BHPH
demographics.

Continuing on, Zabritski said BHPH financing accounted for
about 9.18 percent of vehicle financing in 2010. Breaking that down further,
she said 0.35 percent of BHPH financing is on new vehicles, while 14.38 percent
is on used vehicles.

She breaks down the 2010
vehicle financing penetration like this:

Bank: 34.6 percent

Captive: 25.05 percent

Credit Union: 18.12 percent

BHPH: 9.18 percent

Finance: 8.08 percent

Other: 4.97 percent

Experian's risk
tiers:

Super Prime: 740-plus

Prime: 680-739

Non-Prime: 620-679

Subprime: 550-619

Deep Subprime: <550

According to Zabritski, there are more than 16 million
new-vehicle registrations each year and more than 40 million used-vehicle
registrations. DMV sourced data compiled by Experian includes vehicle title and
registration data in 50 U.S. states and D.C., as well as 46 states providing
the finance source on record and 34 states providing dealer source on record.

By matching the Experian credit data to this information,
insights can be found, Zabritski highlighted.

For instance, the average credit score of BHPH customers is
738 on a new vehicle and 540 on used. Meanwhile, the market totals come in at
770 on a new vehicle and 675 on a used.

Interestingly, Zabritski highlighted that 20.14 percent of auto
financing in Georgia goes through BHPH dealers. The next states with the
highest share of BHPH financing include South Carolina at 18.1 percent,
Mississippi at 17.5 percent, Arkansas at 17.1 percent, Alabama at 17 percent
and Texas at 14.9 percent.

However, when breaking the data down by pure numbers,
Zabritski discovered Texas shows the most BHPH business, by far, with 16.28
percent of all BHPH financing occurring in this state. Texas is followed by
Florida, Georgia, California and North Carolina by pure numbers.

When it comes to consumer loyalty by lender type, captives
are on top at 65 percent. Next is the bank category at 40 percent, followed by
credit unions at 28 percent, finance at 21 percent and then BHPH dealers at 4
percent. However, most industry experts would expect that once a customer
improves his credit rating via a BHPH purchase, he will go to a more
traditional lending source the next time around.