The 30-day delinquency rate for auto loans and leases has improved for the second consecutive quarter. And as prime-risk originations continue to rise and subprime originations continue to fall, 60-day delinquencies likely will follow suit, according to Experian's second-quarter State of the Automotive Finance Market report.
The 30-day delinquency rate for all loans and leases fell to 2.20 percent in the second quarter from 2.22 percent a year earlier. The 60-day delinquency rate crept up to 0.67 percent from 0.62 percent a year earlier.
The improvement in the 30-day rate was driven by the shift to a more prime-risk market in recent quarters, said Melinda Zabritski, Experian's senior director of automotive financial solutions. "We're not quite seeing it yet on 60, but we're probably just a few quarters away from 60-day improving," she said.
Superprime loan and lease originations made up 19.1 percent of the market in the second quarter, up from 17.9 percent a year earlier. Prime-risk loan and lease originations dominated with a 39.4 percent share, up from 39 percent a year earlier.
Total subprime loan and lease originations, however, dropped to 18.4 percent of the market in the second quarter from 19.3 percent in the previous period. The share of deep subprime originations also fell slightly, to 3.45 percent from 3.54 percent.
Experian defines superprime credit scores as 781 to 850, prime as 661 to 780, nonprime as 601 to 660, subprime as 501 to 600 and deep subprime as 300 to 500.