Additional findings from the Q2 automotive credit trends report show that the average customer credit score for both new and used vehicle loans dropped by 10 and eight points, respectively. For new vehicle loans, the average fell from 772 in Q2 2010 to 762 in Q2 2011. For used vehicle loans, the average fell from 679 in Q2 2010 to 671 in Q2 2011.
"Even with a tepid economic recovery in the first half of the year, automotive lenders were willing to increase their level of risk," said Melinda Zabritski, director of automotive credit for Experian Automotive. "This was good news for automotive manufacturers, as nearly half of all consumers fall into non-prime, subprime and deep subprime risk categories. Providing loans to these risk tiers opens the market to significantly more prospects."
The total dollar volume of automotive loans that were 30- or 60-days delinquent dropped from nearly $21 billion in Q2 2010 to $16.9 billion in Q2 2011. Thirty-day delinquencies dropped by 10.39 percent from 2.89 percent in Q2 2010 to 2.59 percent in Q2 2011. Sixty-day delinquencies dropped by 14.46 percent, from 0.71 percent in Q2 2010 to 0.6 percent in Q2 2011.
In other findings:
- Quarterly repossession rates dropped by 4.2 percent, from 0.62 percent in Q1 2010 to 0.59 percent in Q2 2011
- The average loan amount for a new vehicle was up $17, from $25,223 in Q2 2010 to $25,240 in Q2 2011
- The average loan amount for a used vehicle jumped $476, from $16,586 in Q2 2010 to $17,062 in Q2 2011