"Experian Automotive announced that average credit scores for consumers buying a vehicle have dropped to near prerecession levels.
According to its quarterly automotive credit analysis, the average credit score for financing a new vehicle dropped six points to 760 and dropped four points to 659 for used vehicles. Comparatively, credit scores in Q1 of 2008 were at an average of 753 for new vehicles and 653 for used.
Lenders also continued to set favorable terms for consumers during Q1 2012. Interest rates were lower year-over-year and loan terms were longer, giving consumers access to potentially lower monthly payments. For example, the average interest rates dropped to 4.56 percent on new vehicle loans and to 9.02 percent for used. The average loan terms also increased, extending by one month for new and used vehicles to a total of 64 and 59 months, respectively." [Read more]
Thursday, May 31, 2012
Wednesday, May 30, 2012
Used Car Sales Spike
"True Car estimates used car sales will come in at 4,387,554 this month, up 6.3 percent from May 2011 and up 15.7 percent from April.
The ratio of new to used is estimated to be 1:3 for May.
New light vehicle sales, (including fleet) is expected to be 1,400,665 units, up 32 percent fromMay 2011 and up 18.3 percent fromApril (on an unadjusted basis).
The May forecast translates into a Seasonally Adjusted Annualized Rate (SAAR) of 14.5 million new car sales, up from 11.7 million in May 2011 and flat from 14.5 million in April.
Retail sales are up 29.4 percent compared to May 2011 and up 21.1 percent from April." [Read more]
The ratio of new to used is estimated to be 1:3 for May.
New light vehicle sales, (including fleet) is expected to be 1,400,665 units, up 32 percent fromMay 2011 and up 18.3 percent fromApril (on an unadjusted basis).
The May forecast translates into a Seasonally Adjusted Annualized Rate (SAAR) of 14.5 million new car sales, up from 11.7 million in May 2011 and flat from 14.5 million in April.
Retail sales are up 29.4 percent compared to May 2011 and up 21.1 percent from April." [Read more]
Friday, May 25, 2012
Thursday, May 24, 2012
Tuesday, May 22, 2012
Loan Default Rates Drop Again
"All loan types, with the exception of bank cards, saw a decrease in default rates for the fourth consecutive month, according to data through April released by S&P Indices and Experian for the S&P/Experian Consumer Credit Default Indices.
The auto loan default rate hit its lowest in its eight-year history - 1.07 percent in April, down from March's 1.11 percent.
All four loan types that decreased posted their lowest rates since the end of the recent economic crisis. The national composite declined to 1.86 percent in April from its 1.96 percent March rate.
The first mortgage default rate decreased from March's 1.88 percent to April's 1.76 percent. The second mortgage default rate also declined from 1.03 percent in March to 0.93 percent in April. "Bank card" was the only loan type where default rates increased marginally in April, to 4.49 percent from its 4.47 percent March level." [Read more]
The auto loan default rate hit its lowest in its eight-year history - 1.07 percent in April, down from March's 1.11 percent.
All four loan types that decreased posted their lowest rates since the end of the recent economic crisis. The national composite declined to 1.86 percent in April from its 1.96 percent March rate.
The first mortgage default rate decreased from March's 1.88 percent to April's 1.76 percent. The second mortgage default rate also declined from 1.03 percent in March to 0.93 percent in April. "Bank card" was the only loan type where default rates increased marginally in April, to 4.49 percent from its 4.47 percent March level." [Read more]
Friday, May 18, 2012
Black Book Sees Lower Prices
"Black Book said recent trends in new-car trades are easing pressures in the wholesale market.
Editor Ricky Beggs reports that there are a few more cars coming into the market through the trade-in process, as new car sales continue to increase. This is being offset somewhat as the end-of-term lease contracts continue to decline and should continue this pattern through December before starting to increase again after a couple of months into 2013.
Used vehicle truck values increased slightly this past week for seven of the 14 truck segment types.
Full-size crossover showed the most strength with a $32 increase week over week. However, mid-size crossovers declined $40." [Read more]
Editor Ricky Beggs reports that there are a few more cars coming into the market through the trade-in process, as new car sales continue to increase. This is being offset somewhat as the end-of-term lease contracts continue to decline and should continue this pattern through December before starting to increase again after a couple of months into 2013.
Used vehicle truck values increased slightly this past week for seven of the 14 truck segment types.
Full-size crossover showed the most strength with a $32 increase week over week. However, mid-size crossovers declined $40." [Read more]
Thursday, May 17, 2012
Friday, May 11, 2012
Ford Recalls More Minivans
"Ford is recalling 27,000 model year 1998-2003 Windstar vehicles manufactured from Sept. 1, 1997 through July 3, 2003, and currently registered or originally sold in Virginia.
Over time, corrosion can weaken the rear axle making it susceptible to torsional stress. Corrosion and stress can lead to cracks, which, if undetected, can increase, and result in a complete fracture of the axle.
A fractured axle can affect vehicle handling and increase the risk of a crash.
Ford will notify owners, and dealers will inspect and install rear axle reinforcement brackets, or replace the axles, as necessary. This service will be performed free of charge. The recall is expected to begin on or about June 18. Owners may contact Ford at 1-866-436-7332. " [Read more]
Over time, corrosion can weaken the rear axle making it susceptible to torsional stress. Corrosion and stress can lead to cracks, which, if undetected, can increase, and result in a complete fracture of the axle.
A fractured axle can affect vehicle handling and increase the risk of a crash.
Ford will notify owners, and dealers will inspect and install rear axle reinforcement brackets, or replace the axles, as necessary. This service will be performed free of charge. The recall is expected to begin on or about June 18. Owners may contact Ford at 1-866-436-7332. " [Read more]
Friday, May 4, 2012
Consumer Credit Improves
"The credit landscape continues its consistent recovery heading into the second quarter, with the exception of home finance, according to U.S. consumer data from Equifax's March National Consumer Credit Trends Report.
At the end of the first quarter, U.S. consumer debt was at $10.9 trillion, down from its peak of $12.4 trillion in October 2008.
Credit write-offs are lower by 50 percent from March 2009, when banks wrote off a total of $39.7 billion - excluding home finance write-offs. In March the number stood at $20 billion, reflecting stronger consumer finances. During the recession, the average size of delinquencies rapidly increased as dollar rates were outpacing total number of delinquent accounts, a trend that has since reversed in auto, bankcard, consumer finance and retail card categories.
More than 72 percent of total delinquencies are still tied to loans originated between 2005 and 2007, which comprise 36 percent of balances outstanding, while loans opened in 2009 and later have performed much better. Only 12.6 percent of delinquent accounts are from credit lines or loans opened in or after 2009. " [Read more]
At the end of the first quarter, U.S. consumer debt was at $10.9 trillion, down from its peak of $12.4 trillion in October 2008.
Credit write-offs are lower by 50 percent from March 2009, when banks wrote off a total of $39.7 billion - excluding home finance write-offs. In March the number stood at $20 billion, reflecting stronger consumer finances. During the recession, the average size of delinquencies rapidly increased as dollar rates were outpacing total number of delinquent accounts, a trend that has since reversed in auto, bankcard, consumer finance and retail card categories.
More than 72 percent of total delinquencies are still tied to loans originated between 2005 and 2007, which comprise 36 percent of balances outstanding, while loans opened in 2009 and later have performed much better. Only 12.6 percent of delinquent accounts are from credit lines or loans opened in or after 2009. " [Read more]
Thursday, May 3, 2012
Tuesday, May 1, 2012
Used Values Drive Down Losses
"Strong used vehicle values and an improving economy are helping to propel prime U.S. auto ABS losses to new record lows, according to the latest index results from Fitch Ratings.
Prime auto loan ABS delinquencies and annualized net losses (ANL) declined 24 percent and 11 percent month-over-month, respectively.
Positive economic data, including lower unemployment in recent months, resulted in improved loss frequency during March. Prime 60-plus days delinquencies dropped to 0.35 percent, the lowest level in over a decade. Delinquencies were 31.4 percent lower in March versus March 2011.
Prime ANL improved for the third consecutive month to a new record low of 0.34 percent in March, besting February's prior record low. ANL were 49.25 percent lower compared to March 2011.
In the subprime sector, 60-plus days delinquencies sank 25 percent to 2.56 percent in March month-over-month, the lowest level in just under a year. Delinquencies were 2.7 percent lower in March versus a year ago. Subprime ANL skidded lower to 4.71 percent in March, a 29 percent improvement over February and 7.8 percent better than in March 2011. " [Read more]
Prime auto loan ABS delinquencies and annualized net losses (ANL) declined 24 percent and 11 percent month-over-month, respectively.
Positive economic data, including lower unemployment in recent months, resulted in improved loss frequency during March. Prime 60-plus days delinquencies dropped to 0.35 percent, the lowest level in over a decade. Delinquencies were 31.4 percent lower in March versus March 2011.
Prime ANL improved for the third consecutive month to a new record low of 0.34 percent in March, besting February's prior record low. ANL were 49.25 percent lower compared to March 2011.
In the subprime sector, 60-plus days delinquencies sank 25 percent to 2.56 percent in March month-over-month, the lowest level in just under a year. Delinquencies were 2.7 percent lower in March versus a year ago. Subprime ANL skidded lower to 4.71 percent in March, a 29 percent improvement over February and 7.8 percent better than in March 2011. " [Read more]
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