According to New Data from Equifax and Moody's
Analytics' CreditForecast.com -
ATLANTA and NEW YORK, April 20, 2012 /PRNewswire via COMTEX/
--New separate auto loan and lease data from
CreditForecast.com, a leading provider of consumer credit
data and forecasts, shows that most consumers looking to buy
a new vehicle are still financing their purchases with loans
rather than leases, but the volume of leases is expanding
rapidly and expected to grow approximately 50% by the end of
Total U.S. auto lease balances increased 9.0% in March
compared with a year ago, more than twice the increase in
auto loan balances which grew by 4.2% over the same period.
Lease balances originated by auto finance companies in
particular rose 11% in March versus a year ago.
CreditForecast.com forecasts auto lease balances to grow at
an 8% average annual rate through the end of 2017, while auto
loan balances are expected to grow between 2% and 3% annually
over the same period.
"Auto finance companies have ramped up the number of
leases they are providing to well-qualified borrowers with
higher credit scores," said Amy
Crews-Cutts, SVP and Chief Economist of Equifax.
"Leases are growing in popularity in
California, Floridaand the
Northeastern part of the country,"
"Growth in originations by auto finance companies will
drive further expansion in lease balances over the next five
years. Auto finance companies, who issue the large majority
of auto leases, are more sensitive to the growth of the U.S.
economy, and as the economy grows, they are likely to grow
their auto lending originations faster than banks will,"
said Dr. Cristian de Ritis, Director of Consumer
Credit Economics at Moody's Analytics.
"CreditForecast.com now provides a unique capability to
quantitatively and qualitatively analyze the unique dynamics
of these markets. The new data helps auto lenders and
investors to more accurately evaluate, model and benchmark
their portfolios and credit strategies, to account for the
impact of current and expected local economic
conditions," de Ritis added.
Lease financing represents approximately 10% of U.S. auto
lending provided by finance companies, who originate just
over half of all U.S. auto credit. Financing from banks and
credit unions comprise the remaining portion of U.S. auto
These forecasts were made available through Equifax and
Moody's Analytics' enhanced CreditForecast.com
economic service. The service now offers separate detailed
data and forecasts of auto loans and leases covering volume,
credit conditions, and performance for auto lending by banks
and finance companies. This new dimension further increases
the depth of information in CreditForecast.com, a joint
service providing detailed data, forecasts and analysis
covering all forms of US consumer credit.
CreditForecast.com is a single source of actionable consumer
credit and economic data for lenders, financial institutions
and others who need to analyze the relationship between
economic and consumer credit trends. Lenders use
CreditForecast.com to adjust their lending strategies to
mitigate risk and to help comply with regulatory requirements
such as Basel III. The service also helps drive marketing
decisions, identify new market opportunities and segment, and
address borrower needs. To learn more, visit www.CreditForecast.com.
About Moody's Analytics
Moody's Analytics helps capital markets and risk
management professionals worldwide respond to an evolving
marketplace with confidence. The company offers unique tools
and best practices for measuring and managing risk through
expertise and experience in credit analysis, economic
research and financial risk management. By providing
leading-edge software, advisory services and research,
including the proprietary analysis of Moody's Investors
Service, Moody's Analytics integrates and customizes its
offerings to address specific business challenges.
Moody's Analytics is a subsidiary of Moody's
Corporation (NYSE: MCO), which reported revenue of $2.3
billionin 2011, employs approximately 6,100 people
worldwide and maintains a presence in 28 countries. Further
information is available at www.moodysanalytics.com.
About Equifax Inc.
Equifax is a global leader in consumer and commercial
information solutions, providing businesses of all sizes and
consumers with information they can trust. We organize and
assimilate data on more than 500 million consumers and 81
million businesses worldwide, and use advanced analytics and
proprietary technology to create and deliver customized
insights that enrich both the performance of businesses and
the lives of consumers.
Headquartered in Atlanta, Equifax operates or
has investments in 17 countries and is a member of Standard &
Poor's (S&P) 500® Index. Its common stock is traded on
the New York Stock Exchange (NYSE) under the symbol EFX.
For more information, please visit www.equifax.com.