Ford Motor Credit Co. is maintaining its typical below-industry-average share of subprime auto loan originations, even a little lower in the third quarter, said Bob Shanks, chief financial officer of parent Ford Motor Co.
Shanks spoke in what Ford billed as a Let’s Chat conference call last week for investors, analysts, and media.
“Our subprime mix was actually a little bit down in Q3 versus the industry,” he said. “Our portfolio is still in the 5%-to-6% range [in subprime], the same as it’s been for many, many years.”
In contrast, General Motors Financial Co. reported separately last month that subprime accounted for 21% of its portfolio in the third quarter.
According to Experian Automotive, subprime loans accounted for about 30% of new-vehicle loans originated in the second quarter — the latest quarter Experian made data publicly available — and 56% of used-vehicle loans.
Meanwhile, the Ford CFO also said extended loan terms are “something to watch.” According to Experian, the average new- vehicle loan term reached 67 months in the second quarter, tying a record set in the first quarter.
“We are seeing extended terms continue to increase throughout the whole industry,” Shanks said.
