SCHAUMBURG, Ill. (8/14/13)--Vehicle repossessions dropped during second quarter 2013 by 14.8% to the lowest rate since Experian Automotive began tracking the data seven years ago, announced Experian Tuesday.
Roughly 0.36% of all vehicle loans ended in a repossession, down from 0.43% in second quarter 2012. The change represented a 10.4% decrease from the previous low of 0.41% in second quarter of 2006.
The total balance of outstanding automotive loans grew to nearly $751 billion, compared with $682 billion in second quarter of 2012. Banks increased their total dollar volume by $24 billion, while credit unions increased $18 billion, finance companies $16 billion and captive finance companies $11 billion, said Experian.
Of credit unions' $627.6 billion loans outstanding for June, the most recent figure available, 10.8% are in new-auto loans and 19.6% are in used-auto loans, according to the Credit Union Monthly Estimates from the Credit Union National Association. CUNA does not track repossession statistics.
Thirty-day delinquencies dropped 5.6% in second quarter to 2.38%, from 2.52% in second quarter 2012, said Experian. The total is two basis points higher than first quarter 2013 delinquencies and is the lowest for a second quarter since 2006.
Sixty-day delinquencies remained flat at a low 0.58% as the auto lending market stayed strong, said Experian. For second quarter 2006, these totaled less than 0.53%. The 2013 figure is at the next-lowest second-quarter point.
The repossession and delinquency rates for the quarter were "lower than expected," said Melinda Zabritski, Experian's 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," Zabritski said.
Balances of 30-day delinquencies balance rose by $761 million in second quarter but represent 1.96% of the total loan balance, down from 2.05% in the same quarter last year.
Sixty-day delinquencies were 0.42% of the total loan portfolio value, the same as in second quarter 2012.
Nonprime, subprime and deep-subprime loans account for 35.2% of all open vehicle loans in second quarter, up from 34.9% in second quarter 2012.
Average charge-off amounts for defaulted loans were $7,218 for second quarter, a $450 increase from $6,768 in second quarter of 2012, said Experian.