F&I and Showroom, October 2013

Auto Finance New Vehicle Financing Consumer Obtained New vehicle Financing 826 845 761 Q2 2011 Q2 2012 Q2 2013 100 80 60 40 20 0 2009 the same year vehicle sales fell below the 10 million unit mark Sales have grown steadily since those dark days as has the percentage of customers fi nancing their vehicles Both trends have led to signifi cant growth in the total volume of outstanding loans which grew from more than 681 billion in the second quarter 2012 to nearly 751 billion one year later Leading the way were banks which increased their total dollar volume by 24 billion followed by credit unions 18 million fi nance companies 16 million and captive fi nance companies 11 billion Leasing Surge Continues One of the key factors driving the growth in overall fi nancing is the growth in leasing which accounted for 2764 percent of the market in the second quarter Thats up from 244 percent in the same period last year as payment conscience consumers continue to turn to the transaction type to fund their new vehicle purchase And in the second quarter the average monthly lease payment was 408 compared to 457 for an average monthly payment on a newvehicle purchase Leasing is driven largely by Japanese manufacturers and their captive fi nance companies with Toyota Financial Services and American Honda Finance each capturing a 137 percent 32 F I and Showroom October 2013 Recent Automotive Delinquency 30 Day Delinquency Overall 14 bps Improvement 37 75 31 111 Overall flat share of the market in the second 60 50 40 30 20 10 20 15 10 05 quarter Ford Motor Credit came in at No 3 with an 11 percent share of the lease market followed by Ally Financial at 108 percent Delinquencies Drop One of the most surprising trends during the quarter was the strong performance of timely consumer payments Lenders have been gradually 55 19 87 67 increasing their share of subprime loans Fortunately there has 47 47 not been a corresponding increase in delinquencies In the second quarter 30 day delinquencies dropped to 238 percent from 252 percent in the same period in 2012 Sixty day delinquencies remained fl at at 058 percent What did rise during the second quarter was the overall balance of 00 202 221 Banks 30 Day Delinquency Q2 2012 Q2 2013 243 263 238 252 495 504 128 135 Credit Union TOTAL Finance Other Captive Auto Recent Automotive Delinquency 60 Day Delinquency 00 049 54 Banks 60 Day Delinquency 041 037 Q2 2012 Q2 2013 058 058 154 153 027 028 Credit Union TOTAL Finance Other Captive Auto The share of newvehicle loans made to below prime customers increased 8 percent from the year ago quarter Average customer credit scores for new and usedvehicle loans rose 4 and 2 points respectively from the year ago quarter Leasing accounted for 2764 percent of all new vehicles fi nanced in the fi rst quarter The average loan term on new and used vehicles rose one month to 65 and 61 months respectively Q2 2013 by the Numbers