SCHAUMBURG, Ill. — Automotive loan delinquency and repossession rates
increased in the first quarter of 2013, according to Experian
Automotive’s latest State of Automotive Finance report.
Thirty-day auto loan delinquencies rose 1.3 percent, 60-day
delinquencies increased 12.4 percent and repossessions rose 16.9 percent
when compared with the previous year.
“Obviously, we never want to see a rise in delinquencies or
repossessions, but when you compare the current findings with previous
years, they are still lower than the recession-level rates,” said
Melinda Zabritski, Experian Automotive’s senior director of automotive
credit. “As we continue to move forward, we should start to see more
increases as some of the subprime loans coming onto the books begin to
“However, one thing most lenders will agree upon is that today’s subprime borrower is less delinquent than those in the past.”
Findings from the report also showed that automotive repossessions
jumped 16.9 percent, going from 0.43 percent in the first quarter 2012
to 0.50 percent in the first quarter 2013. While repossession rates for
banks, captives and credit unions are all down year over year by as much
as 14.9 percent, rates for finance companies increased by 52.1 percent.
In spite of the increase, overall repossession rates are still
relatively low when compared with the peak rate of 0.71 percent in the
first quarter 2010.
Additionally, total dollar volume of automotive loans rose 9.6
percent to $726 billion in the first quarter 2013, compared with $663
billion in the year-ago quarter. Banks increased loan portfolios by $20
billion, finance companies by $18 billion, credit unions by $14 billion
and captive finance companies by $12 billion.