Tag Archive | "Experian Automotive"

Pearl Technology Integrates Experian Propensity Scoring Platform


DALLAS — Pearl Technology Holdings LLC today announced it has expanded its relationship with Experian to include information on consumer vehicle buying habits. The enhancement allows dealers to precisely target consumers that have the highest propensity to purchase or lease a vehicle within a specified timeframe.

As part of the agreement, Pearl is now able to evaluate more than 1,000 elements when scoring a consumer’s propensity to buy or lease, as well as open new opportunities to its auto dealer clients for pre-owned and CPO units. Pearl now knows which consumers are new or pre-owned buyers, and can target by propensity, APR, payment amount, payments made or remaining, term and credit score, and more.

“We are simply thrilled to expand our relationship with Experian. We contemplated building our own scoring methodology but, ultimately, there is no better data or analytic interpreter than Experian,” said Pearl founder and CEO Bruce Thompson. “Understanding what consumers are likely to purchase or lease, as well as when, is what it’s all about. Overlaying our existing technology on top of 240 million pre-screened records allows our clients to win big with much less investment.”

Today, Pearl’s VehicleXchange incentive-based marketing platform processes nearly 50,000 Experian consumer pre-screens per day for both dealer and OEM clients. By leveraging the new data from Experian, Pearl’s clients will now have the capability to conquest market share for any type of transaction by almost any criteria.

“We’re excited to continue our work with the Pearl team,” said John Gray, president of Experian Automotive. “Understanding the current market landscape and when a consumer is in the market to buy is critical for automotive dealers and OEMs alike. With these insights available, dealers will be able to unlock the potential of the data and to uncover new pockets of opportunity, increase profitability and improve the overall consumer experience.”

Posted in Auto Industry NewsComments (0)

Experian: More Consumers Turning to Leasing, Used Vehicles


SCHAUMBURG, Ill. — The average amount financed and the average monthly payment for new vehicles financed during 2015’s end-of-year quarter rose to record levels, according to Experian Automotive. But those weren’t the only records set during the period.

The credit reporting agency reported today that the average amount financed for a new vehicle in the fourth quarter increased by $1,170 from the prior-year period to $29,551 — the highest level recorded by Experian. The average monthly payment also rose $11 from a year ago to a new high of $493.

“People shop for vehicles largely based on monthly price, and right now, average dollar amounts for new vehicle loans are soaring,” said Melinda Zabritski, senior director of automotive credit for Experian Automotive. “In order to stay within their budget goals, we have seen that more consumers — even those within the prime and super-prime risk categories — are turning to leasing and used vehicles as cost-effective alternatives to buying new.”

Leasing accounted for a record high 33.6% of all new financing during the quarter, with the average lease payment landing at $412.

Additionally, used-vehicle loans accounted for 62.8 percent of all vehicle financing, with the average amount financed for a used vehicle coming out to $18,850. The average monthly payment for a used vehicle, according to Experian Automotive, was $359, with payment gap between new and used widening to an all-time high of $134 in the fourth quarter.

“Over the course of the last few years, we have seen the market stabilizing nicely,” Zabritski noted. “Credit scores are flattening out for new-vehicle financing and more prime consumers are shifting to used, which is helping increase the average score there as well.”

Experian reported that average credit scores across the board have flattened in the past few years. The average credit score for a new vehicle loan was 711, down from 712 in the prior-year period. Average credit scores for new vehicles peaked at 736 in 2009, then dropped 25 points from that period’s end-of-year quarter to the fourth quarter 2015. However, in the past six years, according to the firm, average credit scores for new-vehicle loans have dropped by only four points each year.

For used vehicles, average credit scores increased by one point to 649. Used-vehicle scores also have been relatively flat in recent years after peaking in 2009 at 657.

Here are other findings from Experian Automotive’s fourth quarter report:

  • Reliance on financing continues to grow, with 85.9% of all new vehicles and 54.7% of all used vehicles sold during the period having been financed.
  • The Top 5 models leased were the Honda Civic, Honda Accord, Toyota Camry, Toyota RAV4 and Ford Escape.
  • The Ford Fusion and the Chevrolet Silverado 1500 showed substantial gains in leasing during the period, rising 22% and 38%, respectively
  • The average interest rate for a new-vehicle loan was 4.63 percent, while the average interest rate for a used-vehicle loan reached 8.78 percent
  • Average loan terms for new and used vehicles held steady at 67 months and 63 months, respectively
  • Longer-term loans (those extending 73 to 84 months) for new vehicles grew by 12 percent to account for 29% of all new vehicles financed during the quarter. The percentage of used-vehicle loans with longer terms rose 10.8% to 16.4%.

Posted in Auto Industry NewsComments Off on Experian: More Consumers Turning to Leasing, Used Vehicles

New-Vehicle Registrations Return to Prerecession Levels


SCHAUMBURG, Ill. — New-vehicle registration volumes for light-duty vehicles reached the highest point in nine years, with more than 17 million new vehicles registered within the United States between Nov. 1, 2014 and Oct. 31, 2015, according to Experian Automotive.

The highest number of new registration volumes on record was 17.4 million in 2006, while the lowest point was during the Great Recession, when volumes fell to 10.2 million in 2009.

“It’s encouraging to see new registrations return to prerecession levels, with lower interest and higher employment rates driving vehicle demand,” said Brad Smith, Experian’s director of automotive market statistics. “While I’m sure the auto industry would like to continue this growth annually, it is important to continually monitor data trends and economic indicators to identify shifts in demand and adjust business strategies accordingly.”

Experian’s data also revealed a shift in what consumers are buying, with crossover utility vehicles now accounting for nearly 24% of the market this year — up more than 100% from 2006.

“The crossover utility vehicle segment, with popular entries like the Ford Escape, the Honda CR-V, the Chevrolet Equinox and the Toyota RAV4, provides consumers with a nice balance between utilitarian need and fuel economy,” Smith added. “All-wheel drive versions and roof racks provide the recreational sportsman with the fit and function needed for weekend getaways, while the rear hatch makes these vehicles a viable grocery-getter as well.”

The Top Five brands by market share during the reporting period were Ford, Chevrolet, Toyota, Honda and Nissan. They accounted for 54% of the 17 million new-vehicle registrations. By model, the Ford F-150 led the way with a 2.9% share of the market, followed closely by the Chevrolet Silverado 1500 and Toyota Camry with shares of 2.6% and 2.5%, respectively. The Toyota Corolla, Honda CR-V and Honda Accord tied for fourth with shares of 2.1%.

States leading the way in new-vehicle registrations were California (11.8% share), Texas (9.2%), Florida (7.6%), New York (6%), Illinois (4%).

Posted in Auto Industry NewsComments Off on New-Vehicle Registrations Return to Prerecession Levels

Experian: Leasing Maintains Record Pace in Q3


SCHAUMBURG, Ill. — Experian Automotive reported today that the percentage of vehicles leased during the third quarter reached its highest point since the firm began tracking auto finance data in 2006, accounting for nearly 27% of all new-vehicle transactions.

The firm also noted that the average month lease payment during the quarter rose by $1 from a year ago to $389, making the transaction type a viable option for payment-conscience car buyers as vehicle prices continue to rise.

“While consumers can save an average of $84 per month by leasing rather than taking out a loan on a new vehicle, they should make sure leasing fits their lifestyle,” noted Melinda Zabritski, Experian’s senior director of automotive finance. “Oftentimes, there are mileage caps and other considerations that consumers should familiarize themselves with before entering into a leasing agreement.”

Rising vehicle prices drove loan amounts to record levels in the third quarter, with the average amount financed during the period rising $1,137 from a year ago to $28,936. For used, the average amount financed rose by $290 from a year ago to $18,866. Experian also noted that the gap between new and used loan amounts continued to widen, with consumers able to finance a used vehicle for $10,070 less than a new one.

To keep their payments down, consumers financed their vehicles at record terms. For new vehicles, approximately 44% of car buyers took out loans with terms between 61 and 72 months. For used, 41% of buyers financed their purchased for the same duration. The percentage of car buyers agreeing to even longer terms also increased.

According to Experian, auto loans with terms between 73 and 84 months accounted for 25.7% of vehicles financed in the third quarter, a 17.1% increase from a year ago. For used, loans with terms between 73 and 84 months reached an all-time high, accounting for 16.2% of all used vehicles financed in the third quarter — a 12% increase from a year ago.

Experian also noted that one of the biggest shifts in the auto finance industry during the third quarter was the resurgence of captive finance sources, which claimed their largest share of new-vehicle financing since the Great Recession. They accounted for 51.6% of all new vehicles financed in the third quarter, up from 36.8% in the third quarter 2011.

Banks continued to hold the largest share of new- and used-vehicle loans combined at 34.7%. Finance sources, which traditionally play in the subprime and deep-subprime categories, accounted for 13.34% of all vehicles financed in the third quarter, a 6.4% increase from a year ago.

“Captive lending has made a comeback since suffering a steep drop-off caused by declining new sales and lender-type shifts during the recession,” Zabritski noted. “This is good news for manufacturers, as their captive finance companies often provide an additional source of revenue as well as a pipeline to credit for their dealer networks.”

As for monthly payments, the average for new vehicles financed during the third quarter increased $12 from a year ago $482. For used, payments rose $3 to $361. Additionally, the average credit score for a new-vehicle loan fell to 710, the lowest level since the third quarter 2007. The average interest rate for a new vehicle was 4.63%, while the average for used was 8.76%

Posted in Auto Industry NewsComments Off on Experian: Leasing Maintains Record Pace in Q3

Auto Loan Balances Totaled $968 Billion in Q3


SCHAUMBURG, Ill. — Experian Automotive reported today that outstanding automotive loan balances totaled $968 billion in the third quarter. That’s up $98 million from a year ago and up more than 53% from the post-recession low in 2010.

The firm noted that while outstanding balances have grown substantially, borrowers continue to keep the market stable by making on time payments. It reported that 30-day delinquencies dropped from 2.7% in the year-ago period to 2.5%, while 60-day delinquencies fell from 0.74% in the year-ago quarter to 0.73%.

“Continued growth in the automotive finance market is a clear sign of improved consumer confidence over the past few years,” said Melinda Zabritski, Experian’s senior director of automotive finance. “Since bottoming out in the recession, automotive sales have rebounded steadily — a good sign for consumers, vehicle OEMs, lending organizations and the overall economy.

“What’s critical to this success is that consumers stay on top of their payments,” she added. “If they can continue to manage their financial obligations and make timely payments, the automotive industry can continue to flourish and grow for quite some time.”

The report also found that the largest increase in volume of open loans was in the super-prime category, rising 8.3% from the previous year. Subprime and nonprime followed closely, with increases of 7.8% and 7.7%, respectively. The distribution of open loans by risk segment remains relatively unchanged, Zabritski noted, demonstrating that the surge in outstanding automotive financing is driven by consumers across the board, not a specific segment of the market.

Posted in Auto Industry NewsComments Off on Auto Loan Balances Totaled $968 Billion in Q3

Payment Gap Between New and Used Hits All-Time High in Q2, Experian Reports


SCHAUMBURG, Ill. — Experian Automotive reported today that the gap between the average monthly payments for new and used vehicles during the second quarter reached a record $122 — the largest margin since Experian began publicly reporting auto finance data in 2008.

According to the firm, the average monthly payment for a new vehicle was $483, while the average monthly payment for a used vehicle was $361. But not only did the monthly-payment gap widen during the quarter, so did gap in total loan amounts, with the average new-vehicle and used-vehicle finance amounts reaching $28,524 and $18,671, respectively — a difference of $9,853.

“As the price of new vehicles continues to rise, and the gap between monthly payments for new and used vehicles widens, we see more and more consumers looking for ways to keep their vehicle payments affordable,” said Melinda Zabritski, Experian’s senior director of automotive finance. “This could be especially true for consumers who have the financial ability to pursue a new vehicle but may have sticker shock at the rising prices and don’t want the accompanying high monthly payments.”

And consumers took advantage of stretching loan terms to keep their monthly payments affordable, especially for used vehicles. According to Experian, the percentage of used vehicles financed for 73 to 84 months increased by 14.8% from a year ago to 16.1% — the highest percentage on record. Additionally, new vehicles financed for the same term length climbed 19.7% from a year ago to 28.8% in the second quarter.

Leasing also continued to be a popular option for payment-conscious car buyers, with the transaction type’s share of all vehicles financed during the quarter rising 30.2% from a year ago to 31.5%. And according to Experian’s analysis, lease terms extended past the 36-month average into the 37- to 48-month range, an 18% increase. Additionally, the average lease payment dropped $13 a month from a year ago to $394.

“The automotive finance market continues to progress in response to consumer demand,” said Zabritski. “The availability of different financing options allows consumers to stretch their dollar and more easily find a vehicle that meets their budgetary needs.”

Experian Automotive also reported that the share of used-vehicle financing rose from 53.8% one year ago to an all-time high of 55.5 percent. Also reaching a record high was the percentage of new vehicles financed, which rose from 85% in the year-ago period to 85.8%.

The average credit score for a new-vehicle loan dropped two points from last year to reach 709, while the average credit score for a used loan increased one point to 645 over the same time period.

Also during the second quarter, the average interest rate for a new-vehicle loan was 4.8%, up from 4.6% in the year-ago period. The interest rate for used vehicle loans was 9.1 percent, up from 8.8 percent over the same time period.

Posted in Auto Industry NewsComments Off on Payment Gap Between New and Used Hits All-Time High in Q2, Experian Reports

Page 1 of 512345