Auto Loan Size Decreased in 2000 While Delinquencies Increased

    ARLINGTON, Va., May 24 The average new vehicle loan size
decreased from $19,813 in 1999 to $19,705 in 2000, in spite of a 6% increase
in new vehicle prices, according to the Consumer Bankers Association's 2001
Automobile Finance Study.  Prepared by KPMG Consulting for CBA, the annual
study covers activity in 2000.

    The average used car loan increased from $14,410 in 1999 to $14,686 in
2000.  However, leasing originations shrunk 4.7%, compared to 11.5% growth in
1999.

    New vehicle loan dollar delinquencies increased from 1.57% in 1999 to
1.95% in 2000, still below historic levels.  Used vehicle loan dollar
delinquencies declined from 3.175 to 2.56% for the same period.

    Lease terms continued to lengthen, with terms longer than four years
increasing from 20% in 1999 to 23%.  Also, 2000 was the first year where terms
of 61 or more months received at least 5% of the total maturities.

    The study shows increased conservatism in setting residual values,
relative to using guidebook residual values.  Also, 68% of units coming off
lease in 2000 had reached full term, up from 63% in 1999.

    For full-term vehicles returned to lessors, residual losses are frequent
and often severe-average loss up from $1,920 in 1999 to $2,342 in 2000.
Lessors reported that the average number of vehicles experiencing losses rose
to 95%, up from 84% in 1999 and 71% in 1998.

    The credit profile of new vehicle loans originated changed slightly from
1999 to 2000.  For 2000 loans, 44% of originations had credit bureau scores of
720 and above, up from 41% in 1999.  On the low side, 14% had scores below 620
(or were unscored), compared to 11% in 1999.  The average score was 707,
compared to 700 reported in 1999.