Experian: 30-Day Delinquencies Fell in Q4
Despite concerns over affordability and a growing 90-day delinquency rate, Experian’s fourth-quarter report signals a continued reliance on auto financing is stabilizing the market.

The share of U.S. auto loans extended to consumers in the superprime credit tier grew 3.3% to 20.54% in the fourth quarter, according to the latest report from Experian.
Photo by rawpixel via Pixabay
SCHAUMBURG, Ill. — While vehicle affordability and delinquent loan volume continue to make headlines, new findings from Experian’s Q4 2018 State of the Automotive Finance Market report show these trends may not be as dire as they seem. Analysts found the percentage of 30-day delinquent loans improved year-over-year, while the percentage of 60-day delinquencies saw only a minimal uptick over the same time period.
The report shows 30-day delinquencies dropped to 2.32% from 2.36% a year ago, while 60-day delinquencies increased to 0.78% from 0.76% the previous year. The percentage of delinquent loans continues to remain stable even as more and more consumers rely on automotive financing: In Q4 2018, 85.1% of all new vehicle purchases were financed compared with 81.4% in Q4 2010.
“While delinquencies can be an indicator of automotive finance market health, it’s important to examine these trends within the larger industry context,” said Melinda Zabritski, Experian’s senior director of automotive financial solutions and F&I and Showroom contributor. “With more car shoppers using automotive financing options, it’s natural to see an uptick in the volume of delinquent loans. Lenders need to factor in additional historical trends, such as the percentage of subprime loan originations and shifting payment options, to gain a more complete picture and make the right lending decisions.”
Much of the conversation surrounding delinquency rates is driven by questions of vehicle affordability, specifically the average loan amounts and monthly payments. The average loan amount for a new vehicle was $31,722 (up $623 from the previous year), while the average loan amount for a used vehicle surpassed $20,000 (up $488 from the previous year). The average monthly payment for a new vehicle was $545 (up $30 from the previous year) and the average for a used vehicle was $387 (up $16 from the previous year).
Another component of the conversation around vehicle affordability is interest rates, which for new vehicle loans was 6.13%, up from 5.11% a year ago. For used-vehicle loans, the average interest rate was 9.59%.
“As loan amounts, monthly payments, and interest rates continue to rise, there are a number of factors for consumers to consider as they research their car-buying options,” Zabritski said. “While consumers appear to be doing their due diligence when making borrowing choices that fit their budget, lenders also play a large role. Every consumer deserves access to quality credit, and lenders should leverage all available data to offer the most comprehensive financing options to car shoppers.”
More Auto Finance

Dealerships Are Paying the Price for Extended Car Loans
Growing negative-equity scenarios mean such lengthy terms should be addressed in a forward-looking way to make them work for the dealer and the consumer down the road.
Read More →
Trade-Ins in Negative Equity Reach New Heights
As such trade-ins rise in frequency, so do monthly loan payment amounts and interest rates, according to second-quarter data compiled by Edmunds.
Read More →
Auto Credit Plentiful
June numbers show lenders are readily granting access, including to risky borrowers, as consumers leverage themselves to take on high prices.
Read More →
Automotive Consumers Sink Further in Debt
Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.
Read More →
Porsche Financial Services Shifts Structure
After 36 years with Porsche, the Financial Services Chief Financial Officer Konrad Riedl is retiring, and the department is realigning its management structure.
Read More →
Tariffs Could Raise Insurance Premiums
As U.S. import tariffs affect repair costs, consumers might find it more affordable to replace a damaged vehicle, according to recent Insurify tariff analysis.
Read More →
Smaller Loans, Longer Terms
The youngest generation of car buyers is more likely to finance less expensive vehicles, more than half of generation Z consumers borrowing less than $25,000.
Read More →
New Cars a Tad More Affordable
May averages show that combined circumstances gave auto consumers slightly better buying power for the month, though average prices were up year-over-year.
Read More →
First-Quarter Sees Long Auto Loan Growth
Experian data show more consumers are tapping the method, along with refinancings, to afford buying. Meanwhile, subprime borrowers are getting more access.
Read More →
Mastering Credit Friction
In this video, Josh Krach explains how to turn credit friction into an advantage.
Read More →