Experian: Auto Repossessions Reach Lowest Rate on Record
Schaumburg, Ill. - Experian Automotive announced that quarterly vehicle repossessions dropped by 14.8 percent, to achieve the lowest rate since it began tracking the data seven years ago. According to its latest State of the Automotive Finance Market report, 0.36 percent of all vehicle loans ended in a repossession, down from 0.43 percent in Q2 2012. This change also represented a 10.4 percent decrease from the previous low of 0.41 percent in Q2 2006.
Additional findings from the report showed that 30-day delinquencies decreased by 5.6 percent year over year, going from 2.52 percent in Q2 2012 to 2.38 percent in Q2 2013. While slightly up from Q1 2013 (by two basis points), this decrease brings 30-day delinquencies to its lowest level for the second quarter since 2006. Sixty-day delinquencies remain relatively flat year over year but still are extremely low at 0.58 percent. (Q2 2006 showed 60-day delinquencies slightly lower at 0.53 percent, but 2013 is the next-lowest Q2 point.)
"Repossession and delinquency rates seen this quarter were lower than expected," said Melinda Zabritski, senior director of Automotive Credit. "The seasonality of the market usually has the first quarter showing the lowest 30-day delinquency rates, but even with the total automotive loan portfolio growing, consumers in the second quarter have done an exceptional job of meeting their financial obligations to keep the market strong."
The report also showed that the total balance of outstanding automotive loans grew from more than $682 billion in Q2 2012 to nearly $751 billion in Q2 2013. Banks increased their total dollar volume by $24 billion, followed by credit unions ($18 billion), finance companies ($16 billion) and captive finance companies ($11 billion).
Other findings:
The balance of loans that are 30 days delinquent rose by $761 million in Q2 2013. However, on a percentage basis, delinquencies represent just 1.96 percent of the total loan balance, down from 2.05 percent in Q2 2012.
Sixty-day delinquencies account for just 0.42 percent of the total loan portfolio dollar value. This delinquency rate is flat year over year.
Nonprime, subprime and deep-subprime loans account for 35.2 percent of all open vehicle loans in Q2 2013, up from 34.9 percent in Q2 2012.
Average charge-off amounts for defaulted loans were up by $450, from $6,768 in Q2 2012 to $7,218 in Q2 2013.
More Industry

Luxe N.C. Dealerships Change Hands
A collection of Italian and English brand franchises were handed off to the owner’s friend in the business and include the Carolinas’ only Ferrari retail stores.
Read More →
Exposure Drives Interest in Chinese Cars
At a recent demonstration, consumers had the chance to ride in a Chinese-branded vehicle, a firsthand experience that improved their perceptions and purchase intent.
Read More →
Automotive Consumers Sink Further in Debt
Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.
Read More →
Agent Advocate
Rob Mancuso, who comes from a long line of auto dealers, values general agents’ place in the industry and makes a case for them taking an even bigger seat at the table.
Read More →
Driving Under Distraction
Though consumers gave higher marks to new vehicles in JD Power’s most recent initial-quality poll, high-tech interference worsened, pointing to craving for simplicity.
Read More →
Affordable New Cars a Thing of the Past
More than one out of five new vehicles sell for more than $60,000, according to Edmunds. That's up 7% compared to prepandemic 2019.
Read More →
State Follows Federal Warning on Auto Ads
The Massachusetts attorney general cautioned the state’s automotive dealers to be upfront with the consuming public about their vehicle prices or risk punishment.
Read More →
Consumer Outlook on the Rise
Younger generations are feeling more positive about their financial futures and current affordability pressures than older generations, according to recent TransUnion data.
Read More →
Pennsylvania Dealership Under New Retailers
The sale of the Chrysler Dodge Jeep Ram store puts a family auto group on a leaner path as first-time dealers take the helm.
Read More →
Battery Storage Takes Priority Over EVs
U.S. automakers are prioritizing battery energy stationary storage over electric-vehicle production as the consumer demand for EVs lags the rest of the world.
Read More →