Experian: Open automotive loans top $1T; lease balances hit record high
19 May 2016
The total balance of open automotive loans in the US climbed 11.1% in the first quarter of 2016, surpassing the trillion dollar mark for the first time on record, according to Experian Automotive. The most recent State of the Automotive Finance Market report finds that loan balances reached $1.005 trillion in Q1 2016, up from $905 billion in Q1 2015. Open leases grew by 27.55% to an all-time high of $76.9 billion, up from $73.1 billion the previous year. The market first reached the trillion dollar mark—with the combined total balance of open loans and leases—in Q3 2015.
Findings from the report also show that while there were increases in both 30- and 60-day delinquency rates, the overall percentage of total delinquent loans remains relatively low when compared to pre-recession levels.
In Q1 2016, the percentage of loans and leases considered 30-days delinquent was 2.1%, up from 2.02% in Q1 2015. Additionally, the percentage of loans and leases considered 60-days delinquent grew from 0.57% to 0.61% over the same time period.
Some additional insights from the Q1 2016 report:
The volume of vehicle loans and leases held by nonprime and subprime consumers increased by 9.5% and 10.9%, respectively.
Prime consumer loans and leases increased by 8.9%.
Finance companies and credit unions saw the largest growth in loan and lease market share, growing 25.6% and 15.9%, respectively.
Banks continued to hold the top position in automotive loan and lease volume, growing 7.9% over the previous year to reach $349 billion in market share.
It prove that what i were saying here and in autobloggreen is true, these car manufacturers and part suppliers are near bankrupcy , if the green market was taking on than i will be a trillion in the bank instead of a trillion in the red. The majority of consumer like me is ignoring evs and hybrid and is buying and maintaining gas cars. We never see ev on the road and no ev or hybrid ads on tv whatsoever. These goverment mandates are going nowhere except to a brutal recession and their fight against pollution is useless and on the contrary it's the private sector at low cost that is fighting pollution the best with some sound inventions like electronic fuel injection. All the goverment mandates are increasing pollution like lithium and graphite mining. Yesla, leaf and volt are now goverment businesses instead of free market businesses.
Posted by: gorr | 20 May 2016 at 08:05 AM