Experian Reviews Auto Loan Trends, Including Top Lenders by Different Categories
ORLANDO, Fla. — Due in large part to the troubled capital markets, Experian Automotive reported that captives lost a relatively large share of outstanding loan balances in the third quarter of last year, compared with the third quarter of 2008.
In fact, captives were down 5.4 percent or about $12 billion. Meanwhile, outstanding balances in the finance and other category fell a dramatic 22.7 percent or $23 billion.
On the other hand, both banks and credit unions picked up market share. Banks picked up about $1 billion in outstanding balances (up 0.4 percent), while credit unions grabbed $5 billion, up 3.4 percent.
Continuing on, the company indicated that on a year-over-year basis, 30-day delinquencies at banks grew by 21.7 percent. They grew by 8.7 percent at captives and 4.5 percent at credit unions. For the finance and other category, delinquencies were down by 0.1 percent, but the fact that this segment had less outstanding loans could have played a role.
Overall, delinquencies across the board were up 5.8 percent, to 3.32 percent.
As for 60-day delinquencies, Experian found that banks were up 14.5 percent, captives were up 29.2 percent, credit unions climbed 16.7 percent and finance/other shifted upward to 15.5 percent.
In total, 60-day delinquencies were up 13.4 percent to 0.95 percent year-over-year in the third quarter of 2009.
Reviewing how approvals have shifted across the credit spectrum, Experian said that the super prime category grew by 14.4 percent, the prime segment declined by 3.3 percent. Furthermore, non-prime loans dropped by 12.8 percent, subprime were down by 21 percent and deep subprime declined 12.6 percent year-over-year.
The company defines the spectrum as:
Super prime
Scorex Plus: 740 plus
VantageScore: 801-990
Prime
Scorex Plus: 680-739
Vantage Score: 701-800
Non-prime
Scorex Plus: 620-679
VantageScore: 641-700
Subprime
Scorex Plus: 550-619
VantageScore: 601-640
Deep subprime
Scorex Plus: less than 550
VantageScore: 501-600
The company also discovered that, on average, scores for new- and used-vehicle loans have crept upward. For instance, in the third quarter of 2009, the average new vehicle score was 775, compared with 762 in 2008 and 749 in 2007.
On used vehicles, the average auto loan score was 684 in 2009, compared with 670 in 2008 and 663 in 2007.
Reviewing how credit has changed for new and used financing, Experian reported that super prime for both is up — 10.7 percent gain on new vehicles and 16.9 percent gain on used year-over-year.
Prime financing, meanwhile, is down 8.6 percent on new vehicles, but up 0.8 percent on used vehicles.
Looking at non-prime financing, the company said this is down 18.8 percent on new vehicles and down 8.7 percent on used.
Subprime financing is down 29.1 percent on new vehicles and down 16.9 percent on used. Finally, deep subprime financing is down 38.3 percent on new vehicles and down 8.1 percent on used vehicles.
Experian also revealed the top 20 lenders by market share as of the third quarter:
Chase: 7.2 percent
Toyota: 6.3 percent
Wachovia: 5 percent
GMAC: 4.6 percent
Ford: 3.6 percent
Honda: 3.3 percent
Bank of America: 2.3 percent
Capital One: 1.9 percent
Nissan/Infiniti: 1.7 percent
US Bank: 1.4 percent
5th 3rd Bank: 1.4 percent
BMW Bank: 1.2 percent
Citizens Auto: 1.1 percent
USAA Federal: 0.9 percent
Suntrust: 0.9 percent
BB&T Bank: 0.8 percent
Harris Bank: 0.7 percent
Volkswagen: 0.7 percent
CarMax: 0.7 percent
Mercedes-Benz: 0.6 percent
Top subprime lenders by market share include:
Wachovia: 6.9 percent
Capital One: 5.7 percent
Toyota: 5.6 percent
Chase Auto: 5.5 percent
GMAC: 3.7 percent
Ford: 3.7 percent
Honda: 2.9 percent
Nissan/Infiniti: 2.1 percent
CitiFinancial: 1.5 percent
Credit Acceptance: 1.2 percent
AmeriCredit: 1.1 percent
Navy FCU: 0.9 percent
Santander: 0.9 percent
Regional Acceptance: 0.9 percent
CarMax: 0.9 percent
BMW Bank: 0.8 percent
Westlake Financial: 0.6 percent
Wells Fargo: 0.5 percent
DriveTime: 0.5 percent
USAA Federal: 0.5 percent
Finally, top used-vehicle lenders include:
Wachovia: 5.7 percent
Chase: 4.5 percent
Toyota: 3 percent
Capital One: 1.8 percent
GMAC: 1.6 percent
Bank of America: 1.3 percent
US Bank: 1.2 percent
Ford: 1.2 percent
5th 3rd Bank: 1.2 percent
CarMax: 1.1 percent
BMW Bank: 1.1 percent
USAA Federal: 1.1 percent
Credit Acceptance: 1 percent
Honda: 1 percent
Citizens Auto: 0.9 percent
BB&T Bank: 0.9 percent
Navy FCU: 0.8 percent
TD Banknorth: 0.8 percent
Huntington: 0.7 percent
CitiFinancial: 0.6 percent