Experian Automotive has looked at two auto finance segments for second quarter performance – new-vehicle leasing and subprime risk tiers, and is seeing solid results in these important segments. Analysts say leasing represented 24% of all new-vehicle financing during the second quarter. This puts it on par with the second quarter of 2008. Leasing had been reduced quite a lot by 2009, making up 17.68% of new vehicle funding by the second quarter of that year.
“While yes, leasing units were dramatically impacted after the recession, it bounced back as a percentage of financing fairly quickly,” she continued. “It’s also been very stable and while the market has been recovering unit-wise, leasing is on the same recovery standpoint at it relates to volume,” said Melinda Zabritski, director of automotive credit for Experian Automotive.
With 25.41% of all new vehicle loans to customers in the nonprime, subprime and deep subprime risk tiers, loans to credit-challenged customers were up 14% compared to the second quarter 2011, according the Experian’s research. However, lenders are still being cautious, keeping loan-to-value ratios lower than they were a year ago.