The percentage of new-vehicle loans made to credit-challenged car buyers was at 15.1% in the second quarter of 2014, down from 22.1% in the same period in 2013, according to Experian Automotive.
The total dollar amount of automotive loan balances outstanding hit $839.1 billion in the second quarter of 2014, up 11.7% from the previous year. Officials said the industry should watch this trend closely, as it may dictate the availability of credit in the future.
American Honda Motor Co. has selected Experian Automotive as a provider of vehicle history reports for its Honda Certified Pre-Owned Vehicles and Acura Certified Pre-Owned Vehicles programs.
CUDL Credit Unions became the fourth largest lending segment in the first quarter, growing their origination count by 25.4%.
The auto finance industry broke new ground in several reporting categories in the first quarter. But not all records are meant to be broken.
The percentage of older vehicles on the road has reached its highest level since 2009, and the average age of vehicles on the road is expected to keep rising.
Loan terms in the first quarter 2014 stretched to their highest level since the company began publicly reporting the data in 2006.
While 60-day automotive loan delinquencies fell nationally, 22 states experienced increases. The sharpest increase occurred in Delaware, where delinquencies jumped by nearly 10%.
The unusually cold weather that impacted much of the economy didn’t slow down the auto finance industry, which reached new highs in several critical metrics.
Open automotive loan balances reached a new high in the end-of-year quarter, while delinquencies stayed below prerecession levels, according to Experian Automotive’s fourth-quarter data.
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