* Second quarter 2018 continues a series of record highs for loan balances with credit unions maintaining double-digit growth – New monthly payments hit $525 hitting an all-time high! Record highs are reported by Experian for average used vehicle loan amounts.
• Overall delinquency improves driven by reductions in the credit union and finance company space – Longer term loans continue to dominate the market yet New car loan term stays stable with prime and super-prime decreasing year-over-year.
• Leasing remains over 30% of all new consumer vehicle sales yet decreases year-over-year
• Credit scores improve as lending continues to shift into more prime segments – Gap between new and franchise used payments widen. Prime consumers shift slightly away from used vehicles yet used subprime financing remains at record lows.
• Subprime reaches Q2 record lows driven primarily by lows in used financing – Average used payments also reach record highs
• Loan amounts remain high with payments rising as interest rates increase – Rates rise across the entire automotive loan market