Summer is often a peak season for auto sales. Dive into the latest data and insights to see how consumers are financing, average term and loan amount, as well as which lenders are capturing share.

1. Summer Sizzle
Vehicle Sales
Will LENDERs Capitalize?
for

2. The summer months mean consumers are
hitting dealer lots to score their next set of
wheels. Are lenders positioned to be a part of
the financing solution?

3. It’s true – vehicle sales do see an uptick in the summer months …
Edmunds says: Car shoppers keep flooding showrooms, a trend that’s
expected to continue for the rest of the year.2
JAN FEB MAR APR MAY JUN JULY AUG SEP OCT NOV DEC
1,400,000
1,200,000
1,000,000
1,800,000
1,600,000
US Light-Duty CY15 Vehicle Registrations1
2
http://www.edmunds.com/car-news/strong-april-car-sales-to-preview-hot-summer-selling-season.html
1
Experian Automotive, 2015

4. 2010
2011
2012
2013
2014
2015 $27,022
$25,503
$25,067
$24,655
$24,437
$26,078
AVERAGE manufacturer's suggested retail price3AVERAGE manufacturer's suggested retail price3
And vehicle prices have climbed, leading more to finance.
2
Experian Automotive and NADA Used Car Guides – Q4 2015
1
Experian Automotive – Q1 2016
PERCENTAGE OF VEHICLES WITH FINANCING5PERCENTAGE OF VEHICLES WITH FINANCING5
NEW USED
86.3% 55.3%
AVERAGE MANUFACTURER’S SUGGESTED RETAIL PRICE2
PERCENTAGE OF VEHICLES WITH FINANCING1

5. New vehicle loan amount, monthly payment and term all inch higher.
AVERAGE NEW MONTHLY PAYMENT1
AVERAGE NEW LOAN TERM1
AVERAGE NEW LOAN AMOUNT1
AVERAGE NEW MONTHLY PAYMENT4AVERAGE NEW MONTHLY PAYMENT4
NEW LOAN
2015
NEW LEASE
$406$406$405$405
$503$503
$488$488
2016 2015 2016
AVERAGE NEW LOAN AMOUNT4AVERAGE NEW LOAN AMOUNT4
$28 7 1 1
$30 0 3 2
,
,
2015
2016
AVERAGE NEW LOAN TERM4AVERAGE NEW LOAN TERM4
2015 2016
67MONTHS
68MONTHS
1
Experian Automotive – Q1 2016 compared with Q1 2015

6. And used vehicle loan amount, monthly payment and
term have increased as well.
AVERAGE FRANCHISE USED TERM1
AVERAGE FRANCHISE USED LOAN AMOUNT1
AVERAGE FRANCHISE USED MONTHLY PAYMENT1
$19 8 8 4
$20 7 2 3
,
,
2015
2016
2015 2016
65MONTHS
66MONTHS
1
Experian Automotive – Q1 2016 compared with Q1 2015
2015
$376$376$368$368
2016

7. While average loan rates are showing some
increases, they still remain historically low.
1
Experian Automotive – Q1 2016
AVERAGE LOAN RATES1
AVERAGE LOAN RATE BY RISK TIER FOR Q1 20161
+ -4.71%
NEW
+ -4.79%
+ -
8.03%
+ -7.81%
FRANCHISE USED
Q1 2015 Q1 2016
Q1 2015 Q1 2016
NEW
FRANCHISE USED
4.6%
9.12%
15.25%
3.29%
6.57%
11.03%
AVERAGE
FRANCHISE
USED
AVERAGE
NEW
4.6%
9.12%
15.25%
3.29%
6.57%
11.03%
AVERAGE
FRANCHISE
USED
AVERAGE
NEW
PRIME NONPRIME SUBPRIME
4.6%
9.12%
15.25%
3.29%
6.57%
11.03%
AVERAGE
FRANCHISE
USED
AVERAGE
NEW
PRIME NONPRIME SUBPRIME

8. So who is capturing the finance business?1
Captives often have an edge if incentives are linked with the manufacturer, and
especially in the lease space, but lenders can wedge themselves in if they present
attractive rates – before consumers set foot in the dealership, or
afterwards with a re-fi.
34.8% BANK
26.2% 18%
13.4%
7.7% CAPTIVE
CREDIT UNION
FINANCE CO.
BHPH
1
Experian Automotive – Q1 2016

9. • Identify consumers likely to be in the market for a new or used vehicle within the
next 30 to 120 days using predictive tools and analytics.
• Gain visibility to a consumer’s current auto financing and estimated interest rate
and present a more attractive rate – perhaps a refi on a dealer-arranged loan.
• If you bring in a new auto customer via the indirect route (dealer financing), grow
the member relationship within the first 90 days.
How to grow auto share
THIS SUMMER...
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