F&I and Showroom, April 2014

Auto Finance Dollar Volumes Up Sharply Total Outstanding Loan Balance 96 157 210 256 116 178 221 283 Q4 2012 Q4 2013 Billions 800 700 600 500 400 300 200 100 0 Bank Captive Credit Union Finance YOY Change Loan Balance 27 21 11 Bank Captive Credit Union 20 Finance Other Billions 30 25 20 15 10 5 0 open loans spanned across all lending types with fi nance companies showing the greatest year over year increase of 212 followed by credit unions up 132 banks up 105 and captives 53 With that much money in play it was critical that consumers make their loan payments on time And for the most part they did In the fourth quarter 30 day delinquencies dropped 35 from a year ago to 263 while 60 day delinquencies remained fl at at 074 There was one dark cloud on the horizon Repossessions were up 428 in fourth quarter rising from 046 in the year ago quarter to 065 of all open automotive loans However the increase was driven entirely by fi nance companies which were more active during the quarter and tend to operate in the high risk credit segments For that segment the repossession rate jumped from 161 32 F I and Showroom April 2014 Recent Automotive Delinquency 30 Day Delinquency 30 25 20 15 10 05 Overall 19 bps decrease 49 59 in the year ago period to 284 Repossessions however fell for all other segments with the rate for banks falling from 024 in the fourth quarter 2012 to 023 For captives the rate fell from 036 to 034 while the rate for credit unions inched down from 016 in the year ago quarter to 015 Leasing Reaches New Heights Leasing continued to be a popular option 428 763 for todays payment conscience 70 consumers The transaction type which accounted for a record 284 of all new vehicles fi nanced during the quarter up from 248 one year ago was even more attractive for car buyers in the fourth quarter with the average monthly lease payment settling in at 51 less than the average monthly loan payment From the year ago period the average monthly lease payment fell from 426 to 420 00 023 024 Banks Reposession Rates Q4 2012 Q4 2013 034 036 065 046 284 161 015 016 Credit Union TOTAL Finance Other Captive Auto The share of newvehicle loans made to below prime customers increased 39 from the year ago quarter Average credit scores for new vehicle loans decreased 9 points while scores for used vehicle loans increased 2 points Average loan amounts for new and used vehicles were up 739 and 345 respectively Loan terms on new vehicles remained fl at at 65 months while terms for used vehicles rose one month Q4 2013 by the Numbers ISTOCKPHOTO COM JAYMAST