Hanover, Md. - The 17th annual Non-Prime Auto Finance Survey to be produced is the most comprehensive of its kind with information coming directly from the finance companies. The participating financing sources were asked to respond to the survey questions covering a variety of topics including originations, servicing and loss management operations. Data for both calendar years 2011 and 2012 were collected. The year-over-year comparisons discussed within the survey are based on answers by the same respondent groups, ensuring comparability.
"This all-new report provides a wealth of unique insights into below-prime auto finance in America," said Prestige Financial's Aaron Dalton, who chaired the committee to revamp the report from prior versions. "It combines exclusive and actionable survey data with invaluable figures from Experian, to form the hallmark of the Association's ongoing efforts to promote even greater transparency throughout the industry."
Key observations:
Below-prime market growth is the strongest growth found in the medium sized lender segment (10,001 - 100,00 accounts);
Average advances are up across the board;
Speed to market continues to increase, with only 28 percent of applications taking longer than 45 minutes, compared to 45 percent in the previous year; and
Collateral protection activity is widespread with GPS tracking and insurance tracking used by nearly 60 percent.
The 2013 Survey has had a substantial overhaul. Benchmark Consulting created a new, easier to read format and includes data provided by Experian. Unlike broader industry reports, the data within this survey has been limited strictly to below prime, providing unique aggregations. The data from Experian represents key market developments for the automotive financing segment and while direct comparisons cannot be made, the data does provide both market insights and directional comparison that is useful.
"After nearly two decades of valuable data gathering and analysis performed on behalf of the non-prime auto finance industry, the National Auto Finance (NAF) Association was pleased to be able to expand its survey to its Members as well as to the auto industry as a whole," said Marguerite Watanabe, Connections Insights.
The 2013 Non-Prime Auto Finance Survey is available for purchase through the Association's Web site, www.nafassociation.com, for $500.
