Colonnade

Focus. Expertise. Results.

  • Our Services
  • Team
  • Industry Expertise
  • Transactions
  • Industry Reports
  • News
  • Blog
  • Podcast
  • Contact

Notable Trends in the Auto Finance Market – Q2 2016

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.

Industry Trends

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, seehttps://coladv.com/news/industry-reports/.

Back to More Blog Posts

linkedin

Top 5 Things We Learned in 2020 (+ 1 bonus)

December 29, 2020

Reps & Warranty Insurance

December 21, 2020

Q3 2020 M&A Update

November 5, 2020
Colonnade Advisors LLC
  ·  
500 West Madison Street
  ·  
Suite 3410
  ·  
Chicago, IL 60661
  ·  
312.425.8160
  ·   
Connect with us on LinkedIn
Dataroom Login


Investment banking services provided through Colonnade Securities LLC, Member of FINRA. All other services provided through Colonnade Advisors LLC. Copyright © 2016, Colonnade Advisors, LLC. All rights reserved

Copyright © 2021 Colonnade