New research from Equifax indicates auto loan performance remains stable
In response to mixed reports and conflicting analysis in the marketplace, Equifax conducted research examining auto lending dynamics and the resulting performance differences. Findings point to continued strength within subprime auto lending in what has increasingly become a segmented sector within which different lender types specialize in narrow credit bands. The research also found that most lenders remain very conservative relative to their pre-recession lending habits, while some are meeting the needs of consumers with lower credit scores.
“The fact is loan performance is good relative to historical levels and the slight weakening we are seeing cannot be attributed to a change in how lenders are underwriting their loans or call into question the stability of the subprime market as a whole,” said Amy Crews Cutts, SVP and Chief Economist for Equifax. “Consumer data tells us that market share is shifting across different lender types and specialty lenders are lending in higher-risk segments that are not otherwise being served.”
Learn more about the state of the auto subprime lending market—download our new infographic by clicking here.
Recommended For You
Since the last U.S. recession in 2008, financial risk management has seen significant changes. Lending requirements are tighter, verification procedures […]
In November, Equifax and Moody’s joined forces to recap the economic and credit trends of 2018 — and look ahead […]
In November 2018, Equifax and Moody’s Analytics joined forces to recap the economic and credit trends of 2018 and look […]
Lending and the Economy While not its direct intent, the new current expected credit loss (CECL) standard could have a […]