PDF State of the Automotive Finance Market

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´╗┐State of the Automotive Finance Market

A look at loans and leases in Q4 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 Q4 2017

Overall Automotive Finance Market

A review of all open automotive loans & leases

3 ? Experian

Experian Public State of the Automotive Finance Market Q4 2017

Billions Billions

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

Total open automotive loan balance

$1,150

$1,129

$1,100 $1,050

$1,072 8.58%

5.31%

$1,000 $950

$987 11.47%

$900

2015 Q4

2016 Q4

2017 Q4

Total open automotive loan balance

$1,200

$1,000 $800 $600 $400

$166 $241 $244

$179 $277 $252

$189 $313 $259

$200

$337

$364

$368

$0

2015 Q4

2016 Q4

2017 Q4

All Banks Captive Auto Credit Union Finance

4 ? Experian

Experian Public State of the Automotive Finance Market Q4 2017

Source: Experian-Oliver Wyman Market Intelligence Reports

Percentage of subprime shrinks as prime+ reaches nearly 61% of outstanding auto loan balances

Loan balance risk distribution

19.06%

18.72%

19.17%

41.86%

41.64%

42.00%

Year-over-year balance change

7.85% 6.25%

3.39%

3.72%

19.32%

19.25%

18.96%

16.10% 3.66% 2015 Q4

Deep Subprime

16.41%

3.98% 2016 Q4

Subprime Nonprime

16.11% 3.77% 2017 Q4

Prime Super Prime

-0.29%

Deep subprime

Subprime

Nonprime

Prime Super prime

5 ? Experian

Experian Public State of the Automotive Finance Market Q4 2017

30 day delinquency rates are improving

5.0%

2016 Q4 2017 Q4

% of loans & leases 30 dpd

4.65% 4.48%

4.0%

3.0% 2.0%

1.99% 1.82%

1.0%

2.32% 2.39%

1.43% 1.34%

0.0%

Bank

Captive

Credit Union

Finance

6.0%

2016 Q4 2017 Q4

% of loan balances 30 dpd

5.21% 5.12%

4.0%

2.0%

1.81% 1.66%

2.85% 2.92%

1.28% 1.17%

0.0%

Bank

Captive

Credit Union

Finance

2.44% 2.36% Total

2.48% 2.39% Total

6 ? Experian

Experian Public State of the Automotive Finance Market Q4 2017

Source: Experian-Oliver Wyman Market Intelligence Reports

Percentage of loan balances 30 dpd

AK = 1.69% HI = 1.79%

7 ? Experian

Experian Public State of the Automotive Finance Market Q4 2017

60 day delinquency rates also improve

2.0%

2016 Q4 2017 Q4

% of loans & leases 60 dpd

1.82% 1.73%

1.5%

1.0%

0.67% 0.61%

0.5%

0.58% 0.61%

0.37% 0.34%

0.0%

Banks

Captive

Credit Union

Finance

% of loan balances 60 dpd

2.5%

2016 Q4 2017 Q4

2.0%

2.00% 1.97%

1.5%

1.0%

0.59% 0.56%

0.5%

0.69% 0.71%

0.31% 0.27%

0.0%

Bank

Captive

Credit Union

Finance

0.78% 0.76% Total

0.78% 0.75% Total

8 ? Experian

Experian Public State of the Automotive Finance Market Q4 2017

Source: Experian-Oliver Wyman Market Intelligence Reports

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