"As we monitor the health of the automotive market, delinquencies are one of the most telling metrics. If this downward trend continues, it can be an encouraging sign," Melinda Zabritski, Experian's senior director of automotive financial solutions, said in a statement. "Moving forward, lenders will want to keep a close eye on car buyers' payment performance. Understanding these trends and leveraging the power of data helps lenders make the right decisions when analyzing risk."
On-time payments are improving credit scores, Zabritski told Automotive News, while declining market share for subprime and deep-subprime auto loans aided the delinquency decreases.
As subprime and deep subprime slid below 19 percent of the $1.1 trillion in total auto loan balance, the average credit score for new-vehicle financing bumped up one point to 715. The average score for used-vehicle financing rose 3 points to 655.