F&I and Showroom, October 2013
Auto Finance KICKING INTO HIGH GEAR Finance companies are buying deeper and car buyers are rewarding them with timely payments Credit expert breaks down the numbers for the second quarter By Melinda Zabritski L egendary thief Willie Sutton was once asked why he robbed banks His simple straightforward reply went down in history Because thats where the money is Perhaps a little bit of Suttons wisdom has made its way down to todays car buyers After all a record 845 percent of car buyers went through a bank credit union fi nance company captive fi nance company or buy here pay here operation to fi nance their new vehicle purchase during the second quarter of 2013 And with interest rates so low maybe car shoppers feel like theyre getting a steal of a bargain Without question the second 30 F I and Showroom October 2013 quarter was a great time to get an auto loan A confl uence of factors lower delinquency rates lower interest rates lenders willing to take measured risks has created a nearperfect environment for lenders retailers and consumers alike Heres a look at some of the factors that made the quarter so fertile for the automotive fi nancing market Vehicle Financing Up The 845 percent fi nancing mark recorded during the second quarter was up from 826 percent in the year ago period and up from 761 percent at the height of the recession in 2009 s second quarter Thats when credit availability practically dried up following ISTOCKPHOTO COM DOUGSCHNEIDERPHOTO the market meltdown in late 2008 Less than three quarters of all newvehicle purchases involved a loan in Top 10 Auto Finance Sources by Market Share 1 Wells Fargo 589 2 Ally 509 3 Chase Auto Finance 473 4 Toyota Financial Service 441 5 Capital One Auto Finance 380 6 American Honda Finance 370 7 Ford Motor Credit 305 8 Santander 229 9 Nissan Motor Acceptance Corp Infi niti Financial Services 225 10 Bank of America 223 Fi i b i d
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