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State of the Automotive Finance Market

State of the Automotive Finance Market. Marshall Abercrombie – Experian Ralph Jones – Credit Union Loan Source. Discussion. What’s on the road & what are consumers buying?. Trends in originations. Impact on automotive portfolios. North American vehicle database (NVDB).

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State of the Automotive Finance Market

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  1. State of the Automotive Finance Market Marshall Abercrombie – Experian Ralph Jones – Credit Union Loan Source

  2. Discussion • What’s on the road & what are consumers buying? • Trends in originations • Impact on automotive portfolios

  3. North American vehicle database (NVDB) • More than 6.5 billion records • More than 726m U.S. vehicles • More than 56 million Canadian vehicles • More than 296 million U.S. vehicles in operation • Nearly 27 million Canadian vehicles in operation • 1.5 billion titles and 1.6 billion registrations • More than 300 million title brands • 142 million accident – related events

  4. Experian Automotive20,000+ automotive industry customers

  5. AutoCount for Lenders Value proposition AutoCount Risk Report provides valuable market intelligence which empowers our clients to understand new/used vehicle financing trends and market share by lender within score range, vehicle value, loan characteristics and loan-to-value. This information is key to lenders in understanding current market conditions, gain insight into their competition, manage their current consumer and dealer business and in formulating new market strategies. AutoCount for lenders leverages the title and registration data provided by the state DMV’s to create automotive finance market share reporting solutions for the auto finance industry.

  6. What’s on the road today?Light duty vehicles Vehicles in operation Q4 2013 246.1 million Used vehicle sales 39.3 million Vehicles in operation Q4 2014 251.1 million New vehicle sales 16.3 million Carryover Out of operation 11.2 million (4.5%) Source: Experian Automotive as of December 31, 2014 (U.S. light duty vehicles only)

  7. Annual vehicle registrations 1.67% 1.32% 1.98% 1.48% 11.02% 12.38% 6.45% 6.37% Source: Experian Automotive as of December 31, 2014 (U.S. light duty vehicles only)

  8. Annual registrations in Georgia Source: Experian Automotive as of December 31, 2014 (U.S. light duty vehicles only)

  9. Top 10 segments by new registrations Source: Experian Automotive as of December 31, 2014 (U.S. light duty vehicles only)

  10. Alternate power registrations Source: Experian Automotive as of December 31, 2014 (U.S. light duty vehicles only)

  11. Top 10 models Source: Experian Automotive as of December 31, 2014 (U.S. light duty vehicles only)

  12. Origination trends

  13. Percentage of vehicles with financing GA 87% of new and 73.8% of used has financing in Q4 2014 Source: Experian Automotive

  14. Percentage of used model year vehicles without loans 62.9% of all vehicles financed in Q4 2014 were used Source: Experian Automotive

  15. Consumer leasing Source: Experian Automotive

  16. Share of the market by lender type Source: Experian Automotive

  17. Score ranges

  18. Average loan credit scores by vehicle type Source: Experian Automotive

  19. New loans by risk segment Source: Experian Automotive

  20. Used loans by risk segment Source: Experian Automotive

  21. Georgia subprime (% of financing 600 and below) Source: Experian Automotive

  22. Average amount financed Source: Experian Automotive

  23. Average monthly payment Source: Experian Automotive

  24. Average loan term Source: Experian Automotive

  25. Growth in longer term new loans Source: Experian Automotive

  26. Average scores on longer term new vehicle loans Source: Experian Automotive

  27. Used longer term loans by model year Source: Experian Automotive

  28. Percentage of financing by lender type on longer term loans Source: Experian Automotive

  29. Length of Ownership Is Increasing Average ownership = 96 months Experian Automotive - October 2014

  30. Average loan rates Source: Experian Automotive

  31. Portfolios

  32. A look at automotive loan balances • Source: Experian-Oliver Wyman Market Intelligence Reports

  33. Open loan overview Super prime Prime Nonprime Subprime Deep subprime • Source: Experian-Oliver Wyman Market Intelligence Reports

  34. Recent automotive delinquency: 60 day delinquency • Source: Experian-Oliver Wyman Market Intelligence Reports

  35. Percentage of loan balance 60 dpd Source: Experian Automotive

  36. Georgia delinquency

  37. In summary • Consumers continue 2014 shift into Entry-Level CUVs and more fuel efficient 4-cyl vehicles • Automotive finance increasingly drives vehicle purchases with leasing accounting for nearly 1 in 4 new purchases and higher brand loyalty • Overall modest growth in highest risk segments; new high risk approaching 11%; used high risk steady around 33% • Values continue to rise driving overall all-time highs in portfolio balances and monthly payments • Delinquencies beginning to increase with rises in highest risk segments

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