auto dealer in black and red logo
MenuMENU
SearchSEARCH

Subprime Financing Begins to Level Off, Experian Says

The percentage of new-vehicle loans made to credit-challenged car buyers was at 15.1% in the second quarter of 2014, down from 22.1% in the same period in 2013, according to Experian Automotive.

by Staff
September 3, 2014
3 min to read


SCHAUMBURG, Ill. — The percentage of new-vehicle loans made to subprime and deep subprime borrowers began to level off in the second quarter of 2014, according to a new report from Experian Automotive.

The percentage of new-vehicle loans made to consumers in the subprime and deep subprime tiers was at 15.1% in the second quarter of 2014, down from 22.1% in the same period in 2013. While up from the 10.2% low at the peak of the recession in 2009, the current figures are still well below the prerecession level highs of 16.6% in second quarter 2008 and 19.9% in second quarter 2007, according to Experian Automotive.

Similarly, the percentage of used-vehicle loans extended to the subprime and deep subprime segments in the quarter was 40.2%, down from 50.6% in second quarter 2013. Again, the figures are up slightly from the 39% seen in second quarter 2009, but still below the prerecession levels in 2008 and 2007 of 43.4% and 46.6%, respectively.

“Although we’ve seen relative stability in the automotive industry the past several years, lenders are still showing cautionary signs when lending to the subprime market and keeping their risk at manageable levels,” said Melinda Zabritski, senior director of automotive finance for Experian. “As for consumers, as long as those in these higher risk segments continue to pay their bills on time, keep delinquent balances in check and select a vehicle that fits within their budget, they should still be able to obtain the necessary financing to purchase a vehicle that meets their needs.”

Additionally, the average loan amounts extended to subprime and deep subprime consumers also fell in second quarter 2014. The average new-vehicle loan amount to a subprime borrower dropped to $27,347 in second quarter 2014 from $27,563 in the same period 2013, and new loans to deep subprime borrowers fell to $24,836 in second quarter 2014 from $25,486 in second quarter 2013. For used vehicles, the average subprime borrower loan fell to $16,546 in 2014’s second quarter from $17,020 in 2013. Used deep subprime loans fell to $14,358 from $15,113 in second quarter 2013.

Findings from the report also showed that the average loan amount and monthly payment for a used vehicle reached an all-time high in the second quarter. The average used-vehicle loan was $18,258 in quarter two of 2014, up $345 from the previous year. Similarly, the average monthly payment for a loan written on a used vehicle was $355 in second quarter 2014, up $4 from second quarter 2013.

“Used-vehicle financing has experienced consistent growth over the last several years,” Zabritski continued. “As we continue to see the price of vehicles reach new heights, more and more consumers, especially those that are credit challenged, are turning to the used-vehicle market as a viable option to purchase their next car.”

As for new vehicles, the report showed that the average amount financed rose in second quarter 2014 to $27,429 from $26,526 in second quarter 2013. The average monthly payment for a new vehicle, also increased $10 to $467 in second quarter 2014.

The report also noted that of all new vehicles sold in the second quarter of 2014, leases accounted for a record high 25.6%, up from 23.4% the previous year. Meanwhile, the interest rate for a new vehicle was up from 4.46% in second quarter 2013 to 4.59% in 2014, while used vehicle interest rates were up from 8.56% in second quarter 2013 to 8.82% in second quarter 2014.

Also according to the report, the average credit score for a new-vehicle loan in second quarter 2014 was 711, up from 699 a year earlier. And the average credit score for a new-vehicle lease rose to 717 in second quarter 2014 from 706 in second quarter 2013.

Originally posted on F&I and Showroom

More Dealer Ops

Auto Dealer Today, Dealer Debrief, 07/15/2026, with Lauren Lawrence
Dealer Opsby Lauren LawrenceJuly 15, 2026

Dealer Debrief: Defection Data & EV Updates

In this week's debrief, host Lauren Lawrence discusses how to use defection data to your advantage and the latest on EV sales and charging infrastructure.

Read More →
Two professionals shake hands while exchanging a car key fob beside a vehicle, symbolizing a vehicle sale, lease agreement, or dealership transaction.
SponsoredJuly 8, 2026

How Defection Data is Bridging the Dealership Conversion Gap

Lead volume is flat, cross-shopping is up and brand loyalty is in retreat. As confident sales teams keep losing buyers they thought they had, daily industry sales data is showing dealers exactly where their funnel is breaking and how to fix it without buying a single new lead.

Read More →
Auto Dealer Today, Dealer Debrief, 07/02/2026 with Lauren Lawrence
Dealer Opsby Lauren LawrenceJuly 2, 2026

Dealer Debrief: Where are you losing customers?

In this week's debrief, host Lauren Lawrence discusses the hidden leaks in dealerships where you might be losing customers without even realizing it.

Read More →
Ad Loading...
Auto Dealer Today, Dealer Debrief, 06/25/2026, with Lauren Lawrence
Dealer Opsby Lauren LawrenceJune 26, 2026

Dealer Debrief: Improving Your Inventory Management

In this week's debrief, host Lauren Lawrence covers a new survey that shows what service technicians really want and two launches that could help improve your inventory and vehicle life cycle management.

Read More →
group of people standing in a circle holding puzzle pieces together
Dealer OpsJune 1, 2026

Ladies and Gentlemen, This Is a Dealership: Why the Fundamentals Still Decide Who Wins

A teaching moment by a legendary football coach happens to apply perfectly in the auto retail space. Learn what it is and how to use it to your store’s advantage.

Read More →
Cover image for a BOK Financial report titled “Timing the market: How avoiding volatility entirely can hurt long-term reinsurance program performance.” The image shows several road construction barricades with flashing amber warning lights lined up in a nighttime work zone. Beneath the image, red text explains that avoiding volatility can mean falling behind inflation and missing market rebounds that drive long-term surplus growth. The BOK Financial logo appears at the bottom right.
SponsoredMay 8, 2026

What Market Timing Mistakes Mean for Your Reinsurance Program

When volatility hits, dealer-owned reinsurance programs face a familiar temptation: pull back and wait for calmer waters. New data from BOK Financial shows why that instinct can quietly cost you years of surplus growth.

Read More →
Ad Loading...
two cars on a billboard, No Hidden Fees
ComplianceMay 1, 2026

Dealer Ads and the FTC

The agency has made it clear in recent enforcement actions and warnings, in auto retail and other industries, that advertised prices must include all nonoptional costs to the consumer.

Read More →
Closeup of white car's headlight, front end
Dealer Opsby Hannah MitchellApril 17, 2026

Used Autos Supply Dwindles

The March shopping surge, despite high prices, cut into inventory by the most since the thick of the pandemic, Cox Automotive analysts calculated.

Read More →
hands making protective frame over red car, Risk Reality Check, Be Proactive, Auto Dealer Today logo
Dealer OpsApril 1, 2026

Managing Risk Effectively Through Changing Times

The variables influencing risk pricing have changed significantly over the past five years. Being proactive and responsive to emerging trends is not optional but essential.

Read More →
Ad Loading...
Car key, stacks of coins, and a paper car cutout with AutoPayPlus logo, representing auto financing, loan terms, and vehicle affordability trends.
Dealer Opsby StaffMarch 31, 2026

Survey Reveals What Won't Fix What's Breaking Car Sales

AutoPayPlus says extra-long auto loans are trapping consumers and threatening the dealer trade-in cycle, and that the industry is leveraging the wrong tools to combat high MSRPs.

Read More →