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.
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