SCHAUMBURG, Ill.-Credit unions have gained vehicle loan market share, according to Experian Automotive's quarterly automotive credit analysis.
The Experian data shows that during Q1 CU marketshare of auto loans to 16.89% from 10.85%. The overall auto lending market, said Melinda Zabritski, director of automotive credit for Experian is "as healthy as it's been since the market bottomed out in 2008."
The Experian analysis suggests that CUs' increased market share could be explained in part by their ability to set lower terms.
Although considerably lower rates are available in the market, Experian reported the average interest rates dropped to 4.56% on new vehicle loans and to 9.02% 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.
Experian further said the average amount financed on new vehicles rose by $589 in Q1 to $25,995. For used vehicles, the average amount financed increased by $411 to $17,050.
Among other Q1 findings:
* Vehicle loans to nonprime, subprime and deep-subprime customers increased by 11.4%,
* Auto repo's were down by 37.1%.
* Thirty-day delinquencies dropped by 7.6%; 60-day delinquencies dropped by 12.1%.
* Banks gained market share by 7.5% to 40.21%.
* 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 the first quarter of 2008 were at an average of 753 for new vehicles and 653 for used.
