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 , 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, 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.