The average new-vehicle loan size decreased from $19,813 in 1999 to $19,705 in 2000, in spite of a 6 percent increase in new vehicle prices, according to the Consumer Bankers Association's 2001 Automobile Finance Study.

The annual CBA study is closely watched in the automotive finance industry as a bellwether of industry changes and a harbinger of things to come.

The average used-car loan increased from $14,410 in 1999 to $14,686 in 2000. However, leasing originations shrunk 4.7 percemt, compared to 11.5 percent growth in 1999.

New-vehicle loan dollar delinquencies increased from 1.57 percent in 1999 to 1.95 percent in 2000, still below historic levels. Used-vehicle loan dollar delinquencies declined from 3.175 to 2.56 percent for the same period.

Lease terms continued to lengthen, with terms longer than four years increasing from 20 percent in 1999 to 23 percent. Further illustrating the trend towards longer lease terms, 2000 was the first year where terms of 61 or more months received at least 5 percent of the total maturities.

The study shows increased conservatism in setting residual values, relative to using guidebook residual values. Also, 68 percent of units coming off lease in 2000 had reached full term, up from 63 percent in 1999.

For full-term vehicles returned to lessors, residual losses are frequent and often severe. Average loss up from $1,920 in 1999 to $2,342 in 2000. Lessors reported that the average number of vehicles experiencing losses rose to a striking 95 percent, up from 84 percent in 1999 and 71 percent in 1998.

The credit profile of new-vehicle loans originated changed slightly from 1999 to 2000. For 2000 loans, 44 percent of originations had credit bureau scores of 720 and above, up from 41 percent in 1999. On the low side, 14 percent had scores below 620 (or were unscored), compared to 11 percent in 1999. The average score was 707, compared to 700 reported in 1999.

Prepared by KPMG Consulting for CBA, the annual study covers activity in 2000.

The Consumer Bankers Association 2001 Automobile Finance Study costs $225 for CBA members and $400 for non-members. For more information, call (703) 276-1750 or visit the CBA Surveys page.

About the Consumer Bankers Association

Founded in 1919, the Consumer Bankers Association is a recognized voice on retail banking issues in the nation's capital.

CBA members include most of the nation's largest bank holding companies as well as regionals and hold two-thirds of the industry's total assets.

CBA provides leadership and representation on retail banking issues such as privacy, fair lending, and consumer protection legislation/regulation.

For more information on CBA, visit www.cbanet.org.