SCHAUMBURG, Ill. — Automotive lending activity might be gaining some momentum — especially in the non-prime and subprime spaces — based on the latest data available from Experian Automotive.

For both new- and used-vehicle contracts, Experian found loans to non-prime and subprime customers increased by healthy margins during the third quarter as compared to the same period in 2009.

For used units, loans to non-prime buyers climbed 6.2 percent, while loans to subprime buyers improved by 10 percent. For new vehicles, non-prime contracts spiked 10.9 percent and subprime deals soared 16.9 percent.

For buyers falling into the deep subprime category, the third-quarter trends were mixed. In connection with used-vehicle financing, deep subprime contracts slipped by 5.5 percent against the year-ago quarter. However, for deep subprime buyers of new vehicles, the amount climbed 8.7 percent.

Experian defines the credit spectrum as:

Super prime

Scorex Plus: 740 plus

VantageScore: 801-990

Prime

Scorex Plus: 680-739

Vantage Score: 701-800

Non-prime

Scorex Plus: 620-679

VantageScore: 641-700

Subprime

Scorex Plus: 550-619

VantageScore: 601-640

Deep subprime

Scorex Plus: less than 550

VantageScore: 501-600

All told, the three categories of non-prime loans for used vehicles moved higher by 2.69 percent in the third quarter. For new vehicles, the gain was even bigger at 12.7 percent.

"Easier access to loans is a positive sign for the auto industry, as tighter loan criteria during the economic downturn represented a significant challenge for automotive manufacturers and their retail networks," explained Scott Waldron, president of Experian Automotive.

"Making it easier for consumers to obtain credit can only help the auto industry moving forward," Waldron added.

And consumers who have a vehicle loan continue to keep payments current at improving rates.

Experian discovered the total amount of loans in the third quarter with a 30-day delinquency dropped 8.43 percent from 3.27 percent to 2.99 percent.

Melinda Zabritski, director of automotive credit for Experian, said during a Webinar this week that the 30-day delinquency rate is at its lowest point since the company began tracking this trend in 2007. At that point, it was 2.8 percent.

Commercial banks enjoyed the steepest decline in 30-day delinquencies. Experian indicated rates for these loans dropped by 14.84 percent from 3.04 percent to 2.59 percent. For captive auto finance companies, the rate dropped 7.68 percent (3.42 percent to 3.16 percent). Other finance companies — organizations such as Santander, Consumer Portfolio Services and others not holding bank deposits — saw their 30-day delinquencies dip by 4.33 percent (6.49 percent to 6.21 percent). Elsewhere, 30-day delinquencies for credit union loans edged lower by 2.24 percent (1.68 percent to 1.54 percent).

Turning next to 60-day delinquencies, Zabritski shared an even healthier improvement coming in the third quarter. Experian discovered the overall amount sunk by 17.39 percent as all segments of loan companies posted drops of at least 12.20 percent.

The breakdown of 60-day delinquencies included:

—Commercial Banks: Down 24.9 percent from 0.87 percent to 0.67 percent.

—Captive Auto Finance Companies: Down 19.9 percent from 0.74 percent to 0.59 percent.

—Credit Unions: Down 16.31 percent from 0.48 percent to 0.40 percent.

—Other Finance Companies: Down 12.20 percent from 2.30 percent to 2.02 percent.

Looking at 60-day delinquencies geographically, Zabritski said that Experian data revealed most are occurring in the Southeast and parts of the Northeast. States with the highest rates include Louisiana (2.69 percent), Alabama (2.45 percent), Georgia (2.34 percent), Connecticut (2.31 percent) and South Carolina (2.30 percent).

Conversely, Experian noted states with the lowest 60-day delinquency rates came in the far reaches of the nation and Midwest, including Nebraska (1.53 percent), Maine (1.52 percent), Montana (1.50 percent), North Dakota (1.42 percent) and Alaska (0.80 percent).

With delinquency rates dropping, Experian found that repossession rates as well as charge-off amounts posted positive movements in the third quarter, too.

Overall, Experian indicated the third-quarter repossession rate dropped 5 percent from the year-ago period. However, Zabritski pointed out the repo rate for other finance companies actually went up 5.6 percent. This was counterbalanced by drops enjoyed by commercial banks (24.9 percent) and captive auto finance companies (11.1 percent).

The repossession rate for credit unions also crept up slightly as well in the third quarter. Zabritski noted a 1.9-percent increase for this segment.

Across the board, however, Zabritski reported an overall decline in third-quarter charge-off amounts. The average dropped by $2,252 from $9,892 to $7,640.

Experian offered an average charge-off amount breakdown by lender type:

—Commercial Banks: Down $1,497 from $9,228 to $7,731.

—Captive Auto Finance Companies: Down $1,248 from $8,802 to $7554.

—Credit Unions: Down $463 from $8,202 to $7,740.

—Other Finance Companies: Down $3,363 to $10,892 to $7,619.

"Overall, our Q3 analysis shows that there are very positive signs for the automotive lending industry," Zabritski insisted.

"With delinquencies down and less money in their portfolios at risk, lenders can be a little less conservative in their lending strategies," she continued. "Consumers still have the impression that lending is extremely tight, so it will be important for lenders and automotive retailers to educate car shoppers that there are more loans available to a wider group of consumers."

Experian delved into several other financing areas with its third-quarter report, including the average amount financed, the average monthly payment, the average term, and average interest rate for both used- and new-vehicle contracts. Zabritski cautioned that the year-ago comparison for new vehicles include the Cash for Clunkers program, which she believes skews the data slightly.

The company determined the average used-vehicle loan climbed by $977 in the third quarter from $15,729 to $16,706. Meanwhile, the average amount financed for a new vehicle shot up by $2,530 from $22,743 to $25.273.

As the total amount financed rose in the third quarter, the average monthly payment did as well. Experian indicated used-vehicle monthly payments went up by $12 to $343 and new-unit installments climbed by $30 to $452.

The average length of contracts edged only marginally higher during the third quarter. Both used- and new-vehicle terms lengths expanded by a month. Experian said the used average came in at 58 months, while the new average was 63 months.

And the average interest rates on used- and new-vehicle loans moved lower. Experian explained the average rate for a used-vehicle loan dropped from 9.17 percent to 8.63 percent as the average rate for a new-vehicle contract sunk from 5.77 percent to 4.98 percent.

Experian also revealed the top 20 lenders by market share as of the third quarter:

Chase: 5.79 percent

Toyota: 5.47 percent

Wells Fargo: 5.40 percent

GMAC: 5.10 percent

Honda: 4.20 percent

Ford: 3.37 percent

Capital One: 2.67 percent

Bank of America: 2.04 percent

Nissan/Infiniti: 1.92 percent

Fifth Third Bank: 1.66 percent

Hyundai: 1.58 percent

US Bank: 1.56 percent

BMW Bank: 1.28 percent

Ally: 1.25 percent

Huntington: 1.17 percent

AmeriCredit: 1.14 percent

SunTrust Bank: 1.12 percent

Santander: 1.08 percent

Citizens: 1.00 percent

USAA: 0.92 percent

Moving on, top used-vehicle lenders include:

Wells Fargo: 6.84 percent

Chase: 4.20 percent

Toyota: 2.98 percent

Capital One: 2.84 percent

GMAC 1.92 percent

Fifth Third Bank: 1.54 percent

Santander: 1.49 percent

Bank of America: 1.45 percent

Honda: 1.40 percent

AmeriCredit: 1.26 percent

US Bank: 1.26 percent

CarMax: 1.23 percent

Credit Acceptance: 1.15 percent

Huntington: 1.12 percent

BMW Bank: 1.07 percent

USAA: 1.04 percent

Ford: 0.99 percent

Citizens: 0.82 percent

Navy FCU: 0.81 percent

SunTrust Bank: 0.80 percent

Finally, top new-vehicle lenders include:

GMAC: 10.48 percent

Toyota: 9.69 percent

Honda: 8.92 percent

Chase: 8.47 percent

Ford: 7.39 percent

Nissan/Infiniti: 4.38 percent

Hyundai: 4.14 percent

Bank of America: 3.03 percent

Wells Fargo: 2.97 percent

Ally: 2.60 percent

Capital One: 2.39 percent

US Bank: 2.08 percent

Fifth Third Bank: 1.88 percent

SunTrust Bank: 1.66 percent

BMW Bank: 1.63 percent

World Omni: 1.60 percent

Volkswagen: 1.32 percent

Citizens: 1.26 percent

Huntington 1.09 percent

Harris Bank: 0.98 percent.