Friday, September 5, 2014

Latest Auto Trends: Driving Facts About Car Loans, Leases And Credit



Auto Loan Analysis: Comparing the second quarter of 2013 to the second quarter of 2014


For those in the market to purchase a vehicle and have plans on either financing or leasing a vehicle, check out these stats.

  1. The percentage of subprime and deep subprime new car loans being approved by lenders decreased by 7 percent over the last year. During the second quarter of  2013, 22 percent of loans were approved as opposed to 15 percent for the same period in 2014. Subprime credit are those with credit scores below 650, where as deep subprime are those with credit scores in the 500 range or lower.
  2. The percentage of used car loans to subprime and deep subprime loans also dipped from 50.6 percent in 2013 to 40.2 percent this year.
  3. The average new vehicle loan extended to subprime consumers dropped from $27,563 during the second quarter of 2013 to $27,347 during the same period in 2014. 
  4. For used cars, the average deep subprime loan was $15,113 in the second quarter of 2013, as opposed to $14,358, during the same period in 2014.
  5. Leases, which are typically extended to those with high credit scores, accounted for 25.6 percent of new car sales during the second quarter of this year, up from 23.4 during the second quarter of 2013.
  6. Interest rates for new vehicle loans has risen from 4.46 percent in 2013 to 4.59 percent in 2014. 
  7. Interest rates for used vehicle loans has risen from 8.82 percent in 2013 to 8.56 percent in 2014.
  8. The average credit for those securing a new vehicle loan was 711 during the second quarter of 2014, as opposed to 699 during the same period last year.
  9. The average credit score for those securing a new vehicle lease was 717 during the second quarter of 2104, as opposed to 706 during the same period last year.

Source: State of the Automotive Finance Market Report (2014)








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