In this presentation, we explore how vehicle choice can help predict probability of default, even after controlling for financial terms and borrower credit score. Our analysis suggests that vehicle information, including residual price forecasts, lifts the ability of traditional scores to classify borrowers from most likely to default to least likely. We combine data on consumer credit performance with vehicle information forecasts under a range of economic scenarios to answer:
Join Tony Hughes and Michael Vogan to gain valuable insights for managing your auto lending business more effectively.
Tony Hughes is a Managing Director of research at Moody’s Analytics. As the head of specialized modeling, he leads a team of high caliber modelers to develop innovative solutions that serve the financial services industry.
Michael Vogan is an Assistant Director with Moody’s Analytics specializing in the impact of the economy on the auto industry and credit markets.
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