TransUnion analysts report more consumers in the prime and superprime credit tiers are choosing to buy used as off-lease units continue to flood the market, offering a budget-friendly alternative to increasingly expensive new cars.
As higher price tags and interest rates push more prime-credit car buyers toward the used-car lot, credit unions continue to add members, market share, and dealership partners.
Subprime financing fell to its lowest point since 2012, while prime grabbed the lion’s share of the auto finance space in the third quarter. Even the used-vehicle market has gone prime, with buyers outside of prime accounting for just a third of the market.
Annualized net losses for prime auto loan ABS declined on a monthly basis in October, while subprime losses rose 32 basis points to 9.61%, according to the ratings agency. Subprime ANL, however, remain within levels recorded earlier this year.
General Motors’ captive finance company revealed during its quarterly investor call that it began piloting a prime finance product in the first quarter. The firm’s chief executive also noted that market competition is beginning to stabilize.
His Madness offers a few spring cleaning items you need to take care of before those key selling months roll around.
Consumers were back on the sidelines for the first 15 days of July, according to CNW Research, as car buyers continued to wait for the expected increase in incentives after the summer months.
Things are still challenging for below-prime customers, but the middle tiers are beginning to show signs of life, Experian Automotive reveals.
Westlake Financial Services has begun the nationwide roll out of its Titanium Program, which is aimed at prime credit customers.
The performance of U.S. auto loan ABS is starting to exhibit seasonal negative trends, according to the auto loan ABS indices results from Fitch Ratings.
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