State of the Auto Finance Market

State of the Automotive Finance Market

Presented by: Melinda Zabritski Q4 2018

1 ? Experian

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 Q4 2018

Overall Automotive Finance Market

A review of all open automotive loans & leases

3 ? Experian

Experian Public State of the Automotive Finance Market Q4 2018

Billions Billions

Loan balances reach another record high with growth across all lender types; Credit Unions maintain double-digit growth

Total open automotive loan balance

$1,200 $1,180

$1,178

$1,160 $1,140 $1,120 $1,100 $1,080

$1,072

$1,129 5.3%

4.4%

$1,060 $1,040

8.6%

$1,020

$1,000

2016 Q4

2017 Q4

2018 Q4

Total open automotive loan balance

$1,400

$1,200 $1,000

$800 $600 $400

$179.0 $276.8 $252.0

$189.3 $313.0 $258.5

$201.7 $346.3 $262.1

$200

$364.3

$0

2016 Q4

Banks Captive

$368.3

2017 Q4 Credit Union

$368.2

2018 Q4 Finance

4 ? Experian

Experian Public State of the Automotive Finance Market Q4 2018

Source: Experian-Oliver Wyman Market Intelligence Reports

Percentage of subprime remains below 20% of loan balances with increased balances across all risk segments

Loan balance risk distribution

Year-over-year balance change

18.72% 41.64%

19.17% 42.00%

19.62% 42.19%

6.04%

6.81% 4.84%

19.25%

18.96%

18.50%

16.41% 3.98% 2016 Q4

16.11% 3.77% 2017 Q4

15.86% 3.83% 2018 Q4

Deep Subprime Subprime Nonprime Prime Super Prime

2.75%

1.86%

Deep

Subprime Nonprime

subprime

Prime Super prime

5 ? Experian

Experian Public State of the Automotive Finance Market Q4 2018

2.7 million out of 89 million active automotive loans and leases are either 30 or 60 days delinquent

Millions Millions

Number of open automotive

loans and leases

90

89.1

88 86 84

82.7

82

86.5 +4.5%

+3%

80

78

2016 Q4

2017 Q4

2018 Q4

Number of automotive loans and leases that are 30 or 60 DPD

4.0

3.5

3.0

2.5

0.65

2.0

+0.96%

0.65

+6.23%

0.70

1.5

1.0

2.02

2.04

2.06

0.5

0.0

2016 Q4

+1.18%

2017 Q4

+1.08%

2018 Q4

30 DPD 60 DPD

6 ? Experian

Experian Public State of the Automotive Finance Market Q4 2018

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