Volvo buyers have best credit scores among all auto shoppers
01-02-13, 04:51 PM
#1
Volvo buyers have best credit scores among all auto shoppers
Volvo buyers have best credit scores among all auto shoppers
Experian, the US credit reporting agency, recently concluded a study into the financing and credit scores of US car buyers. One of the prime findings was that Volvo buyers enjoy the strongest credit scores among new car shoppers from all brands (nota bene, these are Experian's own numbers and can differ from other agencies). Unlike the Forbes report on the same story, though, we don't find that surprising at all, nor do we think it necessarily helps Volvo's upscale brand aspirations. The Gothenburg-based carmaker has sold its wares on tank-like safety for decades, so it seems natural that its buyers would be just as safe with and attentive to their credit scores as they are with their choice of vehicle.
Audi was ranked fourth by consumer credit score, Porsche seventh and Mercedes-Benz ninth, yet the fact that Volvo outranks them in this metric is probably a plus to its bottom line but not necessarily its image. It's not unfair to say more people desire those other luxury brands – Volvo itself has admitted as much – and people in the throes of desire have been known to be a little more let-it-ride about things like credit scores. The differences aren't huge, though: compared to Volvo's 818, Audi shoppers scored at 813, Mercedes shoppers 802. Lexus and Acura intenders took the other two steps on the top-credit-scores podium.
Mitsubishi took the honors at the other end of the charts, Experian finding that its potential customers, with an average of 604, had the lowest scores. Mitsubishi was followed by Suzuki and Dodge. On the other side of the financing table, Toyota led the way in how many of its vehicles were bought with bank assistance, followed closely by Ford, Chevrolet taking third place. Also of note, and for whatever it's worth, not one automaker made both the 'top ten by financing' and 'top ten by credit score' lists, but four made both the financing and 'bottom ten by credit score' lists: Chevrolet, Nissan, Kia and Dodge.
Other interesting findings? The average amount that consumers financed in the third quarter of 2012 for a new vehicle purchase was $25,963 – up from $25,873 a quarter ago. On the used car side of the equation, the average amount financed was $17,577 – up from $17,359 a year ago.
Experian Automotive: Toyota, Ford and Chevrolet top makes financed in Q3 2012
Subprime financing, leasing show strong gains
Schaumburg, Ill., Dec. 04, 2012 - Experian Automotive today announced that Toyota grabbed top honors in Q3 2012, claiming 14.09 percent of all new vehicles financed. Ford was second with 13.16 percent, and Chevrolet was third with 11.10 percent. Findings from its Q3 State of the Automotive Finance Market analysis showed market share for nonprime, subprime and deep-subprime automotive loans for new vehicles grew by 13.6 percent and new vehicle leasing grew by 7.53 percent year over year.
The analysis found that loans financed for new vehicles to customers with nonprime, subprime or deep-subprime credit ratings increased to 24.84 percent in Q3 2012 from 21.87 in Q3 2011. For used vehicles, the total subprime financing market increased 5.47 percent year over year to 54.43 percent in Q3 2012, up from 51.60 percent in Q3 2011.
"With leasing showing a continued upward trend, and lenders increasing their appetite for risk, consumers were in a good position to obtain a vehicle during Q3," said Melinda Zabritski, director of automotive credit at Experian Automotive. "Expanding loans to lower-risk tiers opens the market for more car shoppers, while an increase in leasing means it is easier for consumers to get more vehicle for a lower monthly payment. Both of these trends are positive signs of a strong and recovering auto finance market, which ultimately benefits the consumer and the entire auto industry."
Percentage of new vehicles financed in Q3 2012 by make
Make
Percentage
Toyota
14.09%
Ford
13.16%
Chevrolet
11.10%
Honda
10.20%
Nissan
8.28%
Hyundai
6.06%
Kia
5.32%
Jeep
4.20%
Dodge
3.21%
Volkswagen
2.85%
Findings from the report showed that lenders still are more risk averse than they were prior to the Great Recession. In Q3 2007, the average credit score for a new vehicle loan was 749, compared with 755 in Q3 2012.
The analysis also included information on the average credit scores by make for new vehicle loans financed in Q3 2012. Consumers who financed a Volvo comprised the highest average credit scores (818), while those who purchased a Mitsubishi made up the lowest average credit scores (694).
Top-scoring new loans by make
Make
Score
Volvo
818
Lexus
816
Acura
813
Audi
810
Infiniti
810
Jaguar
810
Porsche
810
Land Rover
802
Mercedes
802
Lincoln
801
Lowest-scoring new loans by make
Make
Score
Mitsubishi
694
Suzuki
704
Dodge
718
Kia
721
Scion
723
Nissan
726
Chevrolet
737
Chrysler
737
Ram
737
Fiat
741
In other findings:
• Average consumer credit scores for loans on new vehicles fell by eight points, from 763 in Q3 2011 to 755 in Q3 2012. For used vehicles, the average consumer credit scores fell by eight points, from 676 in Q3 2011 to 668 in Q3 2012.
• Credit unions and finance companies showed strong market share growth of 4.5 percent for overall automotive loans. Credit unions now have 18.22 percent of the overall automotive loan market, while finance companies grew to 13.29 percent.
• Banks still have the highest market share at 40.98 percent, but they had a market share decline of 2.9 percent from Q3 2011 to Q3 2012.
• The average amount financed for a new vehicle loan grew from $25,873 in Q3 2011 to $25,963 in Q3 2012.
• The average amount financed for a used vehicle grew from $17,359 in Q3 2011 to $17,577 in Q3 2012.
• Thirty-day delinquencies fell from 2.78 percent in Q3 2011 to 2.67 percent in Q3 2012, marking the second consecutive year that third quarter 30-day delinquencies stayed below the prerecession level of 2.81 percent from Q3 2007.
• Sixty-day delinquencies fell from 0.71 percent in Q3 2011 to 0.69 percent in Q3 2012. This marked the second consecutive year that third quarter 60-day delinquencies stayed below the prerecession level of 0.74 percent from Q3 2007.
• Quarterly repossession rates fell from 0.62 percent in Q3 2011 to 0.40 percent in Q3 2012.
• Quarterly repossession rates for banks, credit unions, captives and finance companies all fell, with finance companies showing the sharpest decline, dropping from 2.36 percent in Q3 2011 to 1.18 percent in Q3 2012.
• Overall charge-off amounts rose from $6,820 in Q3 2011 to $7,026 in Q3 2012.
Experian Automotive's quarterly credit trend analysis features market reporting data and analysis from its AutoCount® Risk Report, which analyzes automotive lending markets based on a uniform measurement of credit quality that segments markets by geography, credit score and vehicle registrations, among other factors. It also incorporates data from the Experian–Oliver Wyman Market Intelligence Reports, which provide topical, quarterly analysis; peer benchmarking options; and commentary on key issues facing the financial services industry.
Subprime financing, leasing show strong gains
Schaumburg, Ill., Dec. 04, 2012 - Experian Automotive today announced that Toyota grabbed top honors in Q3 2012, claiming 14.09 percent of all new vehicles financed. Ford was second with 13.16 percent, and Chevrolet was third with 11.10 percent. Findings from its Q3 State of the Automotive Finance Market analysis showed market share for nonprime, subprime and deep-subprime automotive loans for new vehicles grew by 13.6 percent and new vehicle leasing grew by 7.53 percent year over year.
The analysis found that loans financed for new vehicles to customers with nonprime, subprime or deep-subprime credit ratings increased to 24.84 percent in Q3 2012 from 21.87 in Q3 2011. For used vehicles, the total subprime financing market increased 5.47 percent year over year to 54.43 percent in Q3 2012, up from 51.60 percent in Q3 2011.
"With leasing showing a continued upward trend, and lenders increasing their appetite for risk, consumers were in a good position to obtain a vehicle during Q3," said Melinda Zabritski, director of automotive credit at Experian Automotive. "Expanding loans to lower-risk tiers opens the market for more car shoppers, while an increase in leasing means it is easier for consumers to get more vehicle for a lower monthly payment. Both of these trends are positive signs of a strong and recovering auto finance market, which ultimately benefits the consumer and the entire auto industry."
Percentage of new vehicles financed in Q3 2012 by make
Make
Percentage
Toyota
14.09%
Ford
13.16%
Chevrolet
11.10%
Honda
10.20%
Nissan
8.28%
Hyundai
6.06%
Kia
5.32%
Jeep
4.20%
Dodge
3.21%
Volkswagen
2.85%
Findings from the report showed that lenders still are more risk averse than they were prior to the Great Recession. In Q3 2007, the average credit score for a new vehicle loan was 749, compared with 755 in Q3 2012.
The analysis also included information on the average credit scores by make for new vehicle loans financed in Q3 2012. Consumers who financed a Volvo comprised the highest average credit scores (818), while those who purchased a Mitsubishi made up the lowest average credit scores (694).
Top-scoring new loans by make
Make
Score
Volvo
818
Lexus
816
Acura
813
Audi
810
Infiniti
810
Jaguar
810
Porsche
810
Land Rover
802
Mercedes
802
Lincoln
801
Lowest-scoring new loans by make
Make
Score
Mitsubishi
694
Suzuki
704
Dodge
718
Kia
721
Scion
723
Nissan
726
Chevrolet
737
Chrysler
737
Ram
737
Fiat
741
In other findings:
• Average consumer credit scores for loans on new vehicles fell by eight points, from 763 in Q3 2011 to 755 in Q3 2012. For used vehicles, the average consumer credit scores fell by eight points, from 676 in Q3 2011 to 668 in Q3 2012.
• Credit unions and finance companies showed strong market share growth of 4.5 percent for overall automotive loans. Credit unions now have 18.22 percent of the overall automotive loan market, while finance companies grew to 13.29 percent.
• Banks still have the highest market share at 40.98 percent, but they had a market share decline of 2.9 percent from Q3 2011 to Q3 2012.
• The average amount financed for a new vehicle loan grew from $25,873 in Q3 2011 to $25,963 in Q3 2012.
• The average amount financed for a used vehicle grew from $17,359 in Q3 2011 to $17,577 in Q3 2012.
• Thirty-day delinquencies fell from 2.78 percent in Q3 2011 to 2.67 percent in Q3 2012, marking the second consecutive year that third quarter 30-day delinquencies stayed below the prerecession level of 2.81 percent from Q3 2007.
• Sixty-day delinquencies fell from 0.71 percent in Q3 2011 to 0.69 percent in Q3 2012. This marked the second consecutive year that third quarter 60-day delinquencies stayed below the prerecession level of 0.74 percent from Q3 2007.
• Quarterly repossession rates fell from 0.62 percent in Q3 2011 to 0.40 percent in Q3 2012.
• Quarterly repossession rates for banks, credit unions, captives and finance companies all fell, with finance companies showing the sharpest decline, dropping from 2.36 percent in Q3 2011 to 1.18 percent in Q3 2012.
• Overall charge-off amounts rose from $6,820 in Q3 2011 to $7,026 in Q3 2012.
Experian Automotive's quarterly credit trend analysis features market reporting data and analysis from its AutoCount® Risk Report, which analyzes automotive lending markets based on a uniform measurement of credit quality that segments markets by geography, credit score and vehicle registrations, among other factors. It also incorporates data from the Experian–Oliver Wyman Market Intelligence Reports, which provide topical, quarterly analysis; peer benchmarking options; and commentary on key issues facing the financial services industry.
01-02-13, 05:10 PM
#2
Lexus Fanatic
This could (?) also reflect Volvo's financial problems and uncertain future since Ford dumped them. A company that is struggling for financial security and its position in the marketplace is not likely to encourage its dealerships to make quick, easy deals to risky customers that are likely to default on payments and/or end up with the cars being repossessed. Nor is Volvo particularly known for factory rebates/incentives.
01-03-13, 09:03 AM
#4
Lexus Fanatic
01-03-13, 09:27 AM
#5
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Credit Score Zealots Pursue Fool’s Errand
Last edited by lexmenow; 01-03-13 at 09:31 AM.
01-03-13, 09:39 AM
#6
Lexus Fanatic
You could also try a credit union. They often give you more of a break on the loan-terms than conventional big-time banks.
I'm working hard to get out of debt completely so I don't have to worry about the banks.
01-03-13, 09:47 AM
#7
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Yeah...780 is pretty good. That should get you approved for a reasonable loan or lease-payment for most low or mid-priced cars.
You could also try a credit union. They often give you more of a break on the loan-terms than conventional big-time banks.
Good. More power to you. Best of luck
You could also try a credit union. They often give you more of a break on the loan-terms than conventional big-time banks.
Good. More power to you. Best of luck
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740 isn't a very good score... Riiigggggghhhhhttttt
01-05-13, 09:30 AM
#12
Lexus Fanatic
01-05-13, 04:13 PM
#13
I work in our sales department as our Technology specialist for our Lexus dealer (though I can do BMW, Acura, Infiniti, and Mini if they ever need assistance at our Automall). I have my sales license but I opt not to sell cars. Not much profit in our commission these days compared to a decade ago.
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