State of the Automotive Finance Market

[Pages:27]State of the Automotive Finance Market

A look at loans and leases in Q1 2017

Presented by: Melinda Zabritski | Sr. Director, Financial Solutions

w w w. e x p e r i a n . c o m / a u t o m o t i v e

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Session overview

Market Overview

? Outstanding balances ? Total risk distributions ? Delinquency

Originations

? New and Used financing ? Lender and transaction types ? Loan & lease characteristics

2 ? Experian

Experian Public State of the Automotive Finance Market

Overall Automotive Finance Market

A review of all open automotive loans & leases

3 ? Experian

Loan balances reach another record high yet experience slowing growth; Credit Unions see highest growth

Billions Billions

Total open automotive loan balance

$1,100

$1,082

$1,050 $1,000

$1,005

$950 $900

$905

$850

$800

Q1 2015

Q1 2016

Q1 2017

Total open automotive loan balance

$1,200

$1,000 $800 $600 $400

$143 $215 $230

$170 $249 $244

$180 $286 $252

$200

$318

$343

$363

$0

Q1 2015

Q1 2016

Q1 2017

All Banks Captive Auto Credit Union Finance

4 ? Experian

Experian Public State of the Automotive Finance Market

Source: Experian-Oliver Wyman Market Intelligence Reports

Majority of loan balances remain prime or higher with high risk segments remaining below 20%

Loan balance risk distribution

Year-over-year balance change

20.00%

19.66%

19.74%

17.52%

42.50%

42.09%

41.70%

18.97%

19.10%

18.86%

15.38% 3.16% Q1 2015

Deep Subprime

15.70% 3.45% Q1 2016

Subprime Nonprime

15.94% 3.76% Q1 2017

Prime Super Prime

5 ? Experian

Experian Public State of the Automotive Finance Market

9.53%

6.45%

6.83%

8.27%

Deep

Subprime Nonprime

subprime

Prime Super prime

30 day delinquency rates are improving

% of loans & leases 30 dpd

5.0%

Q1 2016 Q1 2017

4.0%

3.94% 3.77%

3.0%

2.0%

1.84% 1.71%

1.0%

1.96% 1.67%

1.16% 1.21%

0.0%

Bank

Captive

Credit Union

Finance

% of loan balances 30 dpd

5.0%

Q1 2016 Q1 2017

4.0%

4.25% 4.14%

3.0%

2.0%

1.61% 1.55%

1.0%

2.26% 1.90%

1.03% 1.07%

0.0%

Bank

Captive

Credit Union

Finance

2.10% 1.96% Total

2.07% 1.93% Total

6 ? Experian

Experian Public State of the Automotive Finance Market

Source: Experian-Oliver Wyman Market Intelligence Reports

Percentage of loan balances 30 dpd

AK = 1.45% HI = 1.43%

7 ? Experian

Experian Public State of the Automotive Finance Market

60 day delinquency rates continue to deteriorate

2.0%

Q1 2016 Q1 2017

1.5%

% of loans & leases 60 dpd

1.42% 1.55%

1.0%

0.55% 0.58%

0.5%

0.42% 0.51%

0.30% 0.31%

0.0%

Bank

Captive

Credit Union

Finance

2.0%

Q1 2016 Q1 2017

1.5%

% of loan balances 60 dpd

1.72% 1.44%

1.0%

0.47% 0.52%

0.5%

0.0%

Bank

0.47% 0.58% Captive

0.24% 0.25% Credit Union

Finance

0.61% 0.67% Total

0.58% 0.66% Total

8 ? Experian

Experian Public State of the Automotive Finance Market

Source: Experian-Oliver Wyman Market Intelligence Reports

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