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Auto Loan Balances Reach All-time High of $782.9 Billion, Up $103 Billion from Q3 2012
Thursday, November 14, 2013 6:50 AM

Experian Automotive announced yesterday that outstanding automotive loan balances have reached a record high since the company began publicly reporting the data seven years ago. According to its latest State of the Automotive Finance Market report, outstanding balances on automotive loans reached $782.9 billion, up $103 billion from Q3 2012.

Additional findings from the report showed 30-day automotive loan delinquencies were down 3.4 percent over last year, going from 2.67 percent in Q3 2012 to 2.58 percent in Q3 2013. Sixty-day delinquencies remained flat.

One of the few dark clouds in Q3 2013 was the sharp increase in vehicle repossessions for the quarter. In Q3 2012, the repossession rate was 0.40 percent, but it jumped to 0.62 percent in Q3 2013 — a 54.4 percent increase.

However, the increase in repossessions was limited entirely to finance companies, which typically provide loans to the subprime market. Finance companies saw their repossession rate jump 124.9 percent, going from 1.18 percent in Q3 2012 to 2.66 percent in Q3 2013. Repossession rates for captive finance companies, banks and credit unions all dropped slightly in the quarter.

In other findings:

  • Outstanding loans in the nonprime, subprime and deep-subprime segments were up, but only slightly (36 percent in Q3 2013 from 35.9 percent in Q3 2012)
  • The percentage of loan dollars that are 30 days delinquent rose slightly (2.16 percent in Q3 2012 to 2.17 percent in Q3 2013)
  • The percentage of loan dollars that are 60 days delinquent rose slightly (0.50 percent in Q3 2012 to 0.52 percent in Q3 2013)
  • The average charge-off amount for loans gone bad jumped from $7,026 in Q3 2012 to $7,770 in Q3 2013