TodayApril 15, 2022

State of the Automotive Finance Market

* 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

Percentage of loan balances 60 dpd

Percentage of loan balances 60 dpd

Lou Ann Hammond

Lou Ann Hammond is the CEO of Carlist and Driving the Nation. She is the co-host of Real Wheels Washington Post carchat every Friday morning and is the Automotive, energy correspondent for The John Batchelor Show and a Contributor to Automotive Electronics magazine headquartered in Korea. Hammond is a founding member of the Women's World Car of the Year #WWCOTY, and board member of the Women in Automotive.

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