Subprime Auto Credit: Navigating Risks on the Horizon
Auto lending is following a natural and expected credit cycle. Subprime performance will get better as credit tightens. Nonbank auto financiers are facing the highest loss rates when lending to low-income, subprime borrowers. Residual value pressures should begin to abate but will likely increase for trucks and SUVs.
Auto lending is following a natural and expected credit cycle. Subprime performance will get better as credit tightens. Nonbank auto financiers are facing the highest loss rates when lending to low-income, subprime borrowers. Residual value pressures should begin to abate but will likely increase for trucks and SUVs.
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Subprime Auto Credit: Navigating Risks on the Horizon Presentation Slides
In this presentation; Auto lending is following a natural and expected credit cycle. Subprime performance will get better as credit tightens. Nonbank auto financiers are facing the highest loss rates when lending to low-income, subprime borrowers. Residual value pressures should begin to abate but will likely increase for trucks and SUVs.
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Increases in auto lease volumes are nothing new, yet the industry is rife with fear that used car prices are about to collapse. In this talk, we will explore the dynamics behind the trends and the speculation. The abundance of vehicles in the US that are older than 10 years will soon need to be replaced, and together with continuing demand from ex-lessees, this demand will ensure that prices remain supported under baseline macroeconomic conditions.
How Will the Increase in Off-Lease Volume Affect Used Car Residuals?
Increases in auto lease volumes are nothing new, yet the industry is rife with fear that used car prices are about to collapse. In this talk, we will explore the dynamics behind the trends and the speculation.
