By Gina Cocking
From January through August, 11.7 mm new cars have sold, up 0.8% from the same period in 2015 and on pace for a record year, according to Edmunds.com.
More prime and subprime borrowers are choosing used vehicles in 2016 than in 2015. This shift has resulted in a greater percentage of used financing in the prime risk tier and lower average used rates.
More new car borrowers are choosing to lease. 31.4% of new vehicles were leased in Q2 2016 compared to 26.9% in Q2 2015.
Average loan terms continue to increase. Overall, 68 months for new and 72 months for non-prime, subprime and deep subprime combined.
As has been widely reported in the press, loan delinquencies have continued to increase. In Q2, 2.22% are 30 days delinquent and 0.60% are 60 days delinquent compare to 2.19% and 0.56% in Q2 2015.
Data herein is from the Experian Automotive, “State of the Automotive Finance Market: a look at loans and leases in Q2 2016”. See the full report athttp://www.experian.com/automotive/automotive-credit-webinar.html.
For Colonnade’s recent commentary on the Below-Prime Auto Finance market, seehttp://coladv.com/news/industry-reports/.