Percentage of subprime vehicle loans is up to least expensive level in 3 years

Report likewise reveals overall outstanding loan balances reach record high of $905 billion
May 18, 2015: 08:30 AM ET

SCHAUMBURG, Ill., May 18, 2015/ PRNewswire/– Experian Automotive today revealed that the portion of vehicle loans that fell within the subprime and deep subprime risk classifications made up 19.7 percent of the marketplace, reaching its least expensive share given that 2012. According to the State of the Automotive Finance Market report for Q1 2015, subprime loans comprised 16.2 percent of the market, while deep subprime loans captured 3.5 percent.

“Over the in 2013, there has been a significant quantity of conversation around the development in subprime loans, and the concern over the automobile finance industry approaching a possible ‘bubble,'” stated Melinda Zabritski, senior director of vehicle finance for Experian. “While it’s true holds true that the volume of subprime loans is up, the very same can be stated for the remainder of the danger classifications. It’s vital is essential to keep in mind that, while we must remain to enjoy them, the portion of subprime loans make up a small part of the marketplace.”

Findings from the report also showed that automobile loan providers remained to grow their overall portfolios, as overall impressive balances for vehicle loans reached a record-high $905 billion in the first quarter 2015, up 11.3 percent from a year ago.Additionally, in spite of

a boost in the varieties of loans taken into play, both 30- and 60-day delinquencies saw slight reductions in the first-quarter report. Thirty-day delinquencies were down 4.1 percent from a year earlier, while 60-day delinquencies dropped 3.2 percent over the exact same time periodperiod.

“The existing stability in the automotive loan market is a testimony to consumers making timely payments on exceptional loans, which is obviousappears in the improvement in delinquency rates,” continued Zabritski. “While the market is in a favorable position right now, dealerships and loan providers will certainly desire to wantwish to watch on these data sets and utilize them for the good of their business, as the insights allow them to make much better choices in terms of loan terms and rate of interest.”

At a state level, the highest delinquency rates were discovered mostly in the South, while the states with the most affordablethe most affordable rates were typically found in the Midwest and Northwest.

30-day delinquencies

60-day delinquencies

Highest delinquencies

Least expensive delinquencies

Highest delinquencies

Least expensive delinquencies

Mississippi

3.1 %

North Dakota

0.9 %

Washington, D.C.

1.0 %

South Dakota

0.2 %

Washington, D.C.

2.9 %

Oregon

1.0 %

Mississippi

0.9 %

Oregon

0.2 %

Louisiana

2.7 %

South Dakota

1.0 %

Louisiana

0.8 %

Minnesota

0.3 %

South Carolina

2.6 %

Washington

1.1 %

New Mexico

0.7 %

Arkansas

0.3 %

Alabama

2.6 %

Minnesota

1.1 %

Alabama

0.7 %

Iowa

0.3 %

About Experian Automotive
Experian Automotive provides information services and market intelligence that allows results-driven specialists to obtain the max possible understanding of the market, the vehicles and the peopleindividuals who buy them. Its North American Car DatabaseSM residences information on almost 700 million vehicles and, when combined with Experian’s credit, consumer and business info, offers an integrated perspective into the vehicle marketplace. Experian Automotive’s AutoCheck® ® car history reports offer dealers and consumers with in-depth information, permitting them to confidently comprehend, compare and choose the ideal cars. For more informationTo learn more on Experian Automotive and its suite of services, see our Site at http://www.experian.com/automotive.About Experian We are the leading global info services business,
offering data and analytical tools to our customers all over the world. We assist businesses to manage credit threat, avoid scams, target marketing offers and automate decision making. We likewise help individuals to examine their credit report and credit rating, and secure versus identity theft. In 2014, we were called by Forbes magazine as one of the”World’s Most Innovative Business. “We use approximately 17,000 people in 39 nations and our corporate head officeshome offices are in Dublin

, Ireland, with functional head office in Nottingham, UK; California, US; and Sao Paulo, Brazil. Experian plc is listed on the London Stock Exchange(EXPN)and is a constituent of the FTSE 100 index. Total revenue for the year ended March 31, 2015, was US$ 4.8 billion. To find out more about our company, kindly

visit http://www.experianplc.com or view our documentary,”Inside Experian.”Experian and the Experian marks used herein are trademarks or signed up trademarks of Experian Info Solutions, Inc. . Other product and business names pointed out herein are the building of their respective owners.Contact: Roslyn Whitehurst Experian Public Relations 1 714 830 5578 roslyn.whitehurst@experian.com

Twitter: @RozWhitehurst To view the initial variation on PR Newswire, see: http://www.prnewswire.com/news-releases/percentage-of-subprime-automotive-loans-falls-to-lowest-level-in-three-years-300084358.html!.?.!SOURCE Experian Automotive