Newly released information from Experian’s Q2 2020 State of the Automotive Finance Market says despite the pandemic, the automotive industry shows positive signs of recovery. On today’s show, we’re pleased to welcome back Melinda Zabritski, Senior Director of Automotive Financial Solutions at Experian to break things down for us.
This report is a quarterly presentation from Experian which looks at what is currently happening in auto finance. Experian aims to find out what makes and models consumers are purchasing and how they are financing their vehicles. The study looks at both new vehicle and used vehicle originations.
Some of Experian’s key findings detail the impact of the COVID-19 pandemic in this quarter. In April, volume for new and used vehicles was essentially cut in half. However, customers did return to the market around late May. While SUVs have been the top-seller for many years, June saw a strong return of the full-size pick-up truck. This also lead to record highs on new loan amounts of $36,000, an increase of $4,000 year-over-year. The government stimulus package and manufacturer incentives certainly played large roles in these numbers.
Leasing volume was heavily impacted by the pandemic as well. According to Experian, consumers were simply not able to go into the dealership during this time and turn their leases in. The report reveals a strong decrease in subprime consumers also. It’s unclear whether these customers were simply not going to market or if they were not being approved for vehicles.
In her current role at Experian, Melinda Zabritski consults on financial solutions and advises on products and services specific to the automotive credit and lending industry. She also manages the business unit’s thought leadership efforts. For over 15 years, Melinda has held different positions with Experian including sales, marketing, and auto finance. Prior to joining Experian, she held the title of Senior Director of Product Innovation at Equifax. Click here to see Melinda discuss findings from Q1 earlier this year.
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