Of the approximately 40 million used car purchases every year in the
U.S., what percentage are financed, and of the total number of used
car loans, what is the breakdown by lender type (e.g., captive finance
company vs. credit union vs. bank)?

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Request for Question Clarification by ragingacademic-ga on 22 May 2003 16:59 PDT

yourficomatters -

Thanks for submitting another very interesting question to our forum. 
I have spent over an hour researching this question, and have
uncovered some good data, but it does not seem that the breakdown you
seek by lender type is something that is freely available.

Here's what I can give you, let me know if this will be sufficient -
+ Used car financing by type - finance, cash or lease - from 1992
through 1999 (so this addresses the first part of you question neatly,
plus provides you with the trend as well as with cash and lease
breakdown)
+ Market share of ALL auto loans (i.e. used AND new) by type of lender
for 1996-1998 - commercial bank, finance company, credit union or
other.
+ Bonus - auto loan trends for credit unions - about ten different
variables of interest that characterize credit union auto loan
portfolios

So, you'll have a good proxy for used car loan splits based on the
stats for all cars.

Let me know, and I'll post right away.

thanks,
ragingacademic

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Clarification of Question by yourficomatters-ga on 29 May 2003 15:14 PDT

Given the time you have invested, I think that will be fine.  The only
bummer is how dated the information is -- I believe things have
changed quite a bit in 4 years, so generally I try to rely on 2001
data at the latest.

Dear yourficomatters,

Thanks for your question.  First, let me request that if any of the
following is unclear or if you require any further research – please
don’t hesitate to ask me for a clarification.

Used car financing by type - finance, cash or lease - from 1992
through 1999 - addresses the first part of your question neatly,
plus provides you with the trend as well as with cash and lease
breakdown:

Used-car financing by type used for retail used-car purchases
----------------------------------------------------------
            
                      Finance         Cash           Lease
            
1992                    78.3%          21.5            0.2
1993                    77.2           22.6            0.2
1994                    75.7           23.9            0.1
1995                    72.6           26.7            0.7
1996                    73.2           25.2            1.6
1997                    73.4           24.4            2.2
1998                    72.9           24.7            2.4
1999                    71.4           25.8            2.8
            
Source: “Current sales boom may be prelude to light-truck glut,”
Automotive News 16, June 16 1997


Market share of ALL auto loans (i.e. used AND new) by type of lender
for 1996-1998 - commercial bank, finance company, credit union or
other:

Market Share of Auto Loans at year-end by major loan holder type
----------------------------------------------------------------
            
Major Holders               1996         1997        1998
            
Commercial banks            43.6         41.9        40.6
Finance companies           31.1         31.8        33.1
Credit unions               22.3         22.8        22.3
Other                        3.0          3.5         4.0
            
Source: “Industry Trends: Shifting Market Shares Of Auto Loans,”
Consumer Trends XXXV (11): 8, November 1998



“Bonus” - auto loan trends for credit unions:

Auto Loan Trends
National Averages for Credit Unions with over $50M in member deposits
--------------------------------------------------------------
   
Average Number of Auto Loans in Portfolio - 5,563
Average Cost of New Auto Loans Outstanding - $27,550,740
Average Cost of Used Auto Loans Outstanding - $27,978,053
Average Leases Receivable - $710,604
Average Auto Loan Balance - $9,978
Average Auto Loans Per Member - $1,533
Auto Loan and Lease Penetration - 15.5%
Auto Loans and Leases to Total Loans - 37.1%
Delinquent Auto Loans and Leases - 0.98%
New Auto Loan Rates - 7.76%
            
Source: “Analysis Of Lending Data Shows What's Working For Cus,”
Credit Union Journal IV (29): 18, July 17 2000


Per your comment, this response should adequately address your
request.  I will continue to be on the look-out for additional data on
this subject, and will post it here as a follow-up if I come up with
anything.

Thanks,
ragingacademic-ga


Additional Links:

Consumer Credit, Car Financing and Industrial Credit Activity in
Europe:
www.eurofinas.org/ar_and_stats/ stat_ef/Bulletin_N%B01.pdf

Internet car retailing
faculty.haas.berkeley.edu/florian/ Papers/internetcars.pdf

Cowboys or Cowards: Why are Internet Car Prices Lower?
groups.haas.berkeley.edu/imio/florian090502.pdf