Just in time for the summer buying season, we now know what's going on in the world of auto loans. Experian published the 2012 State of the Automotive Finance Market report. This report describes how automobiles are being financed.
One highlight from the report is that borrower profiles are getting more risky; the average credit score of loans issued in the first quarter of 2012 was lower than in previous years. This suggests that lenders are opening up and making loans available to more and more consumers.
At the same time, delinquencies have improved dramatically since 2011. Perhaps everybody who is going to default on a loan already has, or lenders have been doing a better job of selecting borrowers. Either way, it's good news for lenders and consumers when default rates come down.
Experian's report covers a lot more than what you see here. Download the entire report for all the details, or visit The Financial Brand for a nice overview and analysis of the findings.
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