According to the Experian quarterly State of the Automotive Finance report, as of the second quarter of this year, car owners with outstanding auto loans are better able to keep up with loan payments. There were fewer repossessions for non-payment of loans during this quarter (0.36 percent) than in any other quarter since 1996, which is when Experian began keeping records.
During the first quarter, repossessions totaled 0.43 percent. Until the this year’s second quarter 0.36 percent rate, the quarter with the lowest repossession rate on record was the second quarter of 2006, at 0.41 percent.
Also down in the second quarter were 30-day delinquencies on auto loan payments. The totals fell from 2.52 percent last year to 2.38 percent.
Experian’s senior director of Automotive Credit had this to say in a statement: “Repossession and delinquency rates seen this quarter were lower than expected. The seasonality of the market usually has the first quarter showing the lowest 30-day delinquency rates, but even with the total automotive loan portfolio growing, consumers in the second quarter have done an exceptional job of meeting their financial obligations to keep the market strong.”
Other findings revealed in the Experian report were that the outstanding automotive loan totals in the second quarter from last year, $682 billion, grew to almost $751 billion in the second quarter this year.
In other findings, the sixty-day delinquency rate is flat year over year, at only 0.42 percent of the total loan portfolio dollar value. Also, nonprime, subprime and deep-subprime loans comprise 35.2 percent of all open auto loans in the second quarter of 2013, which is an increase over the previous year’s second quarter total of 34.9 percent.
Charge-off amount averages for defaulted vehicle loans rose by $450. In the second quarter of 2012 that total was $6,768, and in the second quarter of 2013 that total was $7,218.
The Experian Automotive quarterly State of the Automotive Finance Market report uses market data from its AutoCount Risk Report and from the IntelliViewSM, which is sourced from the Experian-Oliver Wyman Market Intelligence Reports.