The average new vehicle loan in the United States decreased from $19,813 in
1999 to $19,705 in 2000, in spite of a six percent increase in new vehicle prices,
according to the Consumer Bankers Association’s 2001 Automobile Finance Study.
Prepared
by KPMG Consulting for CBA, the annual study covers activity in 2000.
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The average used car loan increased from $14,410 in 1999 to $14,686 in 2000.
However, lease deal numbers shrunk by 4.7 percent, compared to 11.5 percent
growth in 1999.
New vehicle loan dollar delinquencies increased from 1.57 percent in 1999 to
1.95 percent in 2000, still below historic levels. Used vehicle loan dollar
delinquencies declined from 3.175 to 2.56 percent for the same period.
Lease terms continued to lengthen, with terms longer than four years increasing
from 20 percent in 1999 to 23 percent. Also, 2000 was the first year where terms
of 61 or more months received at least five percent of the total maturities.
The
study shows increased conservatism in setting residual values, relative to using
guidebook residual values. Also, 68 percent of units coming off lease in 2000
had reached full term, up from 63 percent in 1999.
For full-term vehicles returned to lessors, residual losses are frequent and
often severe – average loss up from $1,920 in 1999 to $2,342 in 2000.
Lessors reported that the average number of vehicles experiencing losses rose
to 95 percent, up from 84 percent in 1999 and 71 percent in 1998.
The credit profile of new vehicle loans changed slightly from 1999 to 2000.
For 2000 loans, 44 percent of originations had credit bureau scores of 720 and
above, up from 41 percent in 1999.
On the low side, 14 percent had scores below 620 (or were unscored), compared
to 11 percent in 1999. The average score was 707, compared to 700 reported in
1999.
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