Not Yesterday’s Subprime Auto Loan – Economic Trends Commentary

The automotive finance industry has received a great deal of attention recently around the topic of subprime lending, which typically assumes a highly negative tone. After finding that surprisingly little data on this topic is shared with the press, our Chief Economist, Amy Crews Cutts, and Deputy Chief Economist, Dennis Carlson, set out to explore whether there is any validity to all the talk about a subprime auto lending bubble forming.

Leveraging data aggregated from the credit reports of more than 210 million consumers in the Equifax credit database, Crews Cutts and Carlson share evidence suggesting a bubble is not currently forming in subprime auto lending and that a fair and functioning “second-chance” market is necessary for a fully-functioning economy. A press release was issued announcing publication of their detailed Economic Trends Commentary entitled “Not Yesterday’s Subprime Auto Loan”. You can download the full report here, or view and share from Slideshare below.

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